Table of Content

Table of Content..........................................................................................................................................1
CHAPTER 1...................................................................................................................................................3
INTRODUCTION...........................................................................................................................................3
1.1 Background........................................................................................................................................3
1.2 Statement of problem.......................................................................................................................4
1.3 Research Question.............................................................................................................................4
1.4 Research Objective............................................................................................................................4
1.5 Significance of Study..........................................................................................................................4
1.6 Scope and limitation..........................................................................................................................4
CHAPTER 2...................................................................................................................................................5
LITERATURE REVIEW....................................................................................................................................5
2.1 Productivity.......................................................................................................................................5
2.2 Production system.............................................................................................................................6
2.3 Productivity cycle...............................................................................................................................6
2.4 Types of labor productivity................................................................................................................7
2.4.1 Single factor productivity............................................................................................................7
2.4.2 Total factor productivity.............................................................................................................8
2.4.3 Total productivity........................................................................................................................8
2.5 Productivity variables........................................................................................................................9
2.5.1 Labor...........................................................................................................................................9
2.5.2 Capital.........................................................................................................................................9
2.5.3 Management..............................................................................................................................9
2.6 Productivity measurement................................................................................................................9
2.6.1 Time study Technique.................................................................................................................9
2.6.1.1 Time study procedure........................................................................................................10
2.6.2 Activity sampling Technique.....................................................................................................10
2.6.2.1 Activity sampling procedure..............................................................................................12
2.6.3 Craftsman questionnaire..........................................................................................................12
2.6.4 Foreman delay surveys.............................................................................................................12
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 2.7 Factors affecting labor productivity.................................................................................................13
CHAPTER 3.................................................................................................................................................17
METHODOLOGY.........................................................................................................................................17
3.1 Research Design...............................................................................................................................17
3.2 Research approach..........................................................................................................................18
3.3 Study area........................................................................................................................................18
3.4 Sampling and Population.................................................................................................................18
3.4.1 Research population.................................................................................................................18
3.4.2 Sample size...............................................................................................................................18
3.5 Pilot study........................................................................................................................................19
3.6 Data collection.................................................................................................................................19
3.6.1 Primary data collection.............................................................................................................19
3.6.1.1 Performance measurement...............................................................................................19
3.6.2 Questionnaire design................................................................................................................20
3.6.2 Secondary data collection.........................................................................................................20
3.7 Data analysis....................................................................................................................................20

2
 CHAPTER 1

INTRODUCTION
1.1 Background
Construction industry is one of the nation’s largest and challenging industries. Construction
accounted for 10-11% of nation’s GDP of Nepal. Besides it uses around 35% of Government
Budget. Similarly about 60% of the nation’s development budget is spent through the use of
contractors (FCAN). Hence, construction is the very major sector of country and has positive
impact on the overall improvement of the nation’s economy.

Inefficient management of construction resources can result in a low productivity. Improving

productivity of the construction workforce is crucial to the success of any construction firm as
labor costs comprise 30% to 50% of overall project cost (Thomas & Sudhakumar, 2013). Labor
is defined as the task that requires the exertion of the body and mind both. Labor is an important
resource in construction because it is that combines all other resources like material, plant
equipment and finance in order to produce the activities of constructions.

Productivity is the measure of efficiency, effectiveness and a means of improving the quality of
work from achieving the highest output from limited resources. Productivity is generally refers to
the amount of output produced per unit of time. Thus

Output
Labor productivity =
Input
It is said that perfect productivity (1.0) can be achieved with a 40-hour work week, with people
taking all the holidays and vacation days as planned all of the engineering drawings would be
100% complete there would be no delays of any kind during construction; everyone would work
safely and there would be no litigation at the end of the project (Rowlinson & Proctor, 1999).

It is the important aspect of construction industry that may use as an index for efficiency of
production. Efficient management of construction resources can lead to higher productivity
which can help to achieve cost and time saving. Decreasing productivity has always been major
concern for construction industry ( Ghate et al, 2016)). Quality of construction largely depends
upon the quality of work done by labor. There are many factors that influence the productivity in
construction industry. Labor productivity is one of the most important factors that affects the
physical progress of any construction projects (Sherekar & Tatikonda, 2016). Labor productivity
directly affects construction productivity so it is important to know factors affecting labor
productivity.

3
Achieving better labor productivity requires detail study of the actual labor cost as well as nature
and type of labor. Different labors have different variables which can considerably affect their
productivity levels.

1.2 Statement of problem

As construction is a labor intensive industry. It is paramount importance that labor productivity
is measured and productivity records are maintained and compare within and across projects so
as to maintain and improve it. But in Nepalese Building construction no such study has been
undertaken. And also there is lack of research on factors affecting on labor productivity in the
Building construction which directly affects the productivity of projects.

1.3 Research Question

This research intends to answers following questions:
 What is the labor productivity in the building Construction of United Nation (UN) Peace
keeping Training center, kakani?
 How can be compared the skilled and unskilled labor productivity in this project?
 What are the key factors affecting labor productivity in this project?

1.4 Research Objective

The overall objective of this research is to analyze the labor productivity in the building
construction of United Nation (UN) Peace keeping Training center, kakani, Nuwakot. And the
specific objectives are:

 To measure the labor productivity in the building Construction of United Nation (UN)
Peace keeping Training center, kakani, Nuwakot.
 To compare the skilled and unskilled labor productivity of this project.
 To identify the key factors affecting labor productivity of this project.

1.5 Significance of Study

Construction is a labor intensive industry, the significance of this study justifies the concern
over its labor productivity and it also argued that the labor power is the only productivity
resource and hence construction productivity is mainly depends upon the human effort and
its performance. Labor productivity constitutes a significant part of production input for
construction projects. In the current situations in the developing countries, there is a
continuous downfall of construction productivity, so it is necessary to measure the
productivity of labor and the factors that are directly and indirectly affecting in productivity.

1.6 Scope and limitation

 The study will focus to analyze the performance of labor in production and the factors
that affects in its production,
 The study will be done in Building under construction in UN peace keeping Training
center, kakani, Nuwakot.
 Major activities that will be considered are Rebar works, RCC works and brickworks.

4
 CHAPTER 2

LITERATURE REVIEW
2.1 Productivity
Productivity can be defined in many ways. In construction, productivity is usually taken to mean
labor productivity (Shehata & El-Gohary, 2012). Productivity is defined as the ratio of output to
input. Productivity is the effective utilization of resources (input) in producing and/or services
(output) (sumanth, 1984).

The term “productivity” expresses the relationship between outputs and inputs. The measure of
the rate at which work is performed is called “productivity”. It is a ratio of production output to
what is required to produce it. The measure of productivity is defined as a total output per one
unit of a total input. Labor productivity usually relates manpower in terms of labor cost to the
quantity of outputs produced.

The construction industry is one of the largest industries in any economy. It makes a significant
contribution to the national economy and provides employment to large number of people. In
recent years India’s construction sector has witnessing massive investment in both public as well
as in private enterprises. Multibillion Rupees investments made in construction roads, ports,
power plants, telecommunication sector, urban infrastructural developments, etc have paved the
way for construction demands grow substantially. Although numerous approaches have been
developed to improve efficiency and effectiveness of construction process, implementing
statistical techniques offer the promise to minimize, if not eliminate non value-adding work.
(Shrishirmal & Salgude, 2015)

Japanese National productivity center (lema, 1995) described productivity as follows

“productivity is above all else, an attitude of mind. It is mentality of progress, of constant
improvement of that which exists. It is the certainty of being able to do better today than
yesterday and less well than tomorrow. It is the will to improve the present situation, no matter
how good it may seem, no matter how good it may really be. It is a constant adaptation of
economic and social life changing conditions, it is the continual effort to apply new techniques to
new methods, it is faith in human progress”.

International labor office (ILO) 1996 described productivity as follows “ productivity is the
comparision between how much you have put into the projects in terms of manpower, material,
machinery or tools and the result you get into the project. Making a site more productivity means
getting more output for less cost in less time. Productivity covers every activity that goes into
completeing the construction site works, from the planning stage to the final site clearing. If the
contractor can carry out these activities at lower cost in less time with fewer workers, or with less
equipment then productivity will be improved” (Anderson et al. 1996).

2.2 Production system

5
The concept of productivity is based on process theory and system theory and it is involved with
the transformation form inputs to outputs within one organization (Figure 2.1). Basically, inputs
are defined as the resources that could be combined and modified by technology and managerial
action to become sellable products. Resources could be fixed, such as buildings and facilities, or
variable, such as labor force. Transformation involves actions that happen to inputs and causes
the changes in them. Output, which can be goods or services, is the result of the function of
transformation. Output can be evaluated against quality and performance standards and give
feedback to the system. Efficiency and effectiveness are two measurements for production.
Efficiency shows the ability to produce more outputs with less resource (time and/or money).
Effectiveness measures whether the actual output meets the desired objectives, such as the
service quality. (Report, 2005).

Input Transformation Output

Human resource Action of employees Service

Financial resource Managers Efficiency

Operational resource Technology Effectiveness

Materials

facility

FEEDBACK

Figure 2.1 Model of System Theory (Report, 2005)

2.3 Productivity cycle

Productivity cycle has four stages: productivity measurement, productivity evalution,
productivity planning, and productivity improvement as shown in figure.2.2 below.

6
 Productivity
measurement

Productivity Productivity
improvement Evaluation

Productivity
Planning

Figure 2.2 Productivity cycle (sisalem et al, 2000)

An organization that begins a formal productivity program for the first time can begin with
productivity measurement. When productivity levels are measured, they have to be evaluated or
compared against planned values. Based on this evaluation target, levels of productivity are
planned on short and long terms bases. To achieve the planned targets, productivity improvement
will take place next period. This cycle thus continues for as long as the productivity program
operates in the organization.

The productivity cycle concept shows that productivity improvement must be preceded by
measurement, evaluation, and planning. All four phases are important not just productivity
measurement or just productivity improvement. Also this cycle emphasizes the process nature of
the productivity issue. A productivity program is not one time project but rather a continuous
ongoing process.

2.4 Types of labor productivity

There are three types of productivity, namely single factor productivity, total factor productivity
and total productivity.

2.4.1 Single factor productivity

Single factor productivity is a ratio of output to one type of input (lema, 1995). For example ratio
of outputs to labor input is the labor productivity. Similarly, capital productivity is the ratio
between outputs and capital input. Single factor productivity is widely used as measures of
economic efficiency and has at least the advantage of simplicity but it suffers from a weakness in
that it does not include the total productivity process and it does not adequately deal with the
impact of technological change and factor substitution (Lowe, 1987).

7
 2.4.2 Total factor productivity
To overcome the limitations in the single factor productivity total factors productivity
measurement was developed. Total factor productivity is the ratio of net output to the sum of
associated labor and capital input (Lema, 1995)

output
TFPt ¿
(Ht +Ct )

Where,
TFPt = Total productivity factor over period t
Ht = Human input over period t
Ct = Capital input over period t

From the point of productivity efficiency under conditions of scarcity, an enterprise will have to
combine the various inputs in the correct combination for optimal results to either minimize costs
for a given level of production or to maximize production from available resources. From the
point of allocative efficiency, the owners of the various factors of production may be assumed to
seek to maximize their return from those factors (Lowe, 1987).

2.4.3 Total productivity

Total productivity is the ratio of total outputs to the sum of all input factors. Thus a total
productivity measure reflects the joint impact of all the inputs in producing the outputs. In all of
the above definitions both the outputs and the inputs are real or physical terms by being reduced
to constant dollars of a reference period (Lema, 1995). This reduction to base period is
accomplished by dividing the value of outputs and inputs by deflators or inflators depending upon
whether the prices of outputs and inputs have gone up or down respectively (Lema, 1995).

Total output
TPt ¿
Total input
Where,
TPt = Total productivity over period t

Vt
i.e TPt ¿
(Ht +Ct + Mt + Et +Ot )

Where,
Vt = output value over period t
Ht = human input over period t
Ct = capital input over period t
Mt = Material input over period t
Et = Energy input over period t
Ot = other expenses over period t

8
2.5 Productivity variables
Because of the management of the three variables there could be the increase in productivity.
These variables are labor, capital and management. These factors are critical to productivity
improvement. They represent the broad areas in which managers can take action to obtain better
productivity (Heizer & Render, 1990).

2.5.1 Labor
The quality of labor is very important to improve productivity. Three traditional variables for
improved productivity have been (Heizer & Render, 1990).
1) Basic education appropriate for an effective labor force
2) Diet of the labor force
3) Social overhead that makes labor available, such as transportation and sanitation.

In developing countries these three variables are very important however, in developed nation,
the critical variable is maintaining and enhancing the skill of labor.

2.5.2 Capital
Capital investment provides tools to produce the product. These tools can range from desk
computers to complex machinery and Plants. Production can often be accomplished with some
trade-off between labor and capital. There is trade-off between capital and labor is continually in
flux (Heizer & Render, 1990).

2.5.3 Management
Management is a factor of production and an economic resource and represents the effective use
of labor and capital. It is responsible for insuring that labor and capital are effectively used to
increase productivity. The arts and sciences of management include improvements made by
technology and knowledge. Such improvement requires training and education as well as
dynamic organization (Heizer & Render, 1990).

2.6 Productivity measurement

There are two different techniques of generating labor productivity standards, accountancy-based
and engineering-based method. Accountancy based standards rely on the analysis of historical
accounting data to establish work hour requirements for specific type of work while
Engineering-based standards involve breaking down complex work processes into small
manageable parts and analyzing these parts for the length of time required to complete these
processes (Gilleard, 1992). There are four productivity measurement methods often used for
measuring labor productivity in construction projects. These methods are time study, activity
sampling, craftsman questionnaire and Forman delay survey.

2.6.1 Time study Technique

Time study was the fundamental approach to productivity improvement introduced by Frederick
W. Taylor and Frank Gilbreth in the late 19th and early 20th centuries, and it is principle technique
of work measurement even today. In the current usage, it is not simply the timing of an operation
9
but a process designed to develop standard time or standard output for any construction operation
irrespective of the rate of work being observed (Barnes, 1980). Time study therefore involves-

a) Timing, to discover how long various operations are taking;

b) Rating, to assess the worker being observed against a norm;
c) Building up of time standards, by allowing for appropriate relaxation and contingency
allowances.

Time study provides an analytical basis for budgeting and controlling human resource costs. It
can be important aid to increase productivity by providing standards against which performance
can be planned, monitored and improved.

2.6.1.1 Time study procedure

Time study procedure can be summarized as follows (Barnes, 1980):

1. Determine the objective of the study and select the operation to be observed;
2. Divide the operation into elements;
3. Select the time study method and equipment to be used;
4. Make a sketch of the piece and of the work place;
5. Secure the cooperation of the workers to be observed and their Forman; and
6. Record as much detail about work as possible.

When the study is completed , check to make certain that sufficient number of observations have
been taken.

2.6.2 Activity sampling Technique

It is the technique that measures the percent of time craftsmen spend in various categories of
tasks, such as direct work, transportation materials, or waiting (Chavan & Salunkhe, 2016). It is a
technique through which information can be obtained not only quickly and economically but also
to predetermine levels of accuracy (Olomolaiye et al, 1998). It is a method that measures the
time labor spent in various categories of activities (Thomas et al, 1991). Activity sampling is also
known as (Lema, 1995):

 Ratio survey;
 Observation ratio;
 Snap reading method;
 Random observation method; and
 Work sampling

Activity sampling is a technique where a large number of instantaneous observations are made
over a period of time of labors, machines or processes. In every observation there will be records
of what is happening at that instant period. It provides the necessary information to help
determine how time is being employed by the workforce, identify the problem area that cause the
work delay, and set up a base line measure for productivity improvement. This method provides
information on the amount of time workers spend performing productive, supportive, and non-
10
productive work. Work sampling is a technique that provides valuable information to a
construction manager regarding areas of low productivity that need corrective action (Thomas &
Napolitan, 1999).

The main advantage of work sampling is that it allows a large number of machines or men to be
studied at one time that can be managed using a continuous time study. This leads to a broader
picture of the efficiency of a particular operation than that obtained from a more concentrated but
continuous study on a smaller group (Plicher, 1997).

There are general rules for activity sampling should be observed in sampling construction such
as (Oglesby et al, 2002):

a) The observer must be able quickly to identify the individuals to be included in and
excluded from the sampling;
b) There should be an equal likelihood of observing every worker;
c) Observation must have no sequential relationship;
d) The basic characteristics of the work situation must remain the same while the
observations are being made.

The study continues until observer(s) record the pre-determined number of samples.  The data
obtained for a work sampling study will become more reliable as the quantity of work samples
increases. Statistical tables relaying the quantity of samples required for a high probability of
accuracy are available to help determine the required number of samples.  At the conclusion of
the study, all observed work samples are compiled together and analyzed. Recommendations for
improving productivity are then based upon these findings.  While collecting data it is important
to take work samples throughout the entire day or shift. If the observer does not take into account
the time at the beginning and end of the day or before and after lunch then the data will show an
inflation of productive work by eliminating set up times and times when workers are putting
tools away.

Working day can be subdivided into three major parts: productivity, contributory, and
unproductive time (Oglesby et al, 2002);

Productivity time: Time spent in elements not directly involved in the actual process of putting
together or adding to a unit being constructed;

Contributory time: Time spent in elements not directly added to but essential to finish the unit;

Unproductive time: Idle time or time spent in not useful or all other element.

In construction work, it is generally accepted that 95 percent confidence limits with limit of +/- 5
percent give satisfactory results that can assist in making a real contribution to increase
effectiveness (Lema, 1995 – Pilcher, 1997 – Olomolaiye et al, 1998).

11
2.6.2.1 Activity sampling procedure
Activity sampling procedure can be summarized as follows (Lema, 1995 – Harris et al, 1995):

1) Determine the objective of the study and select the activity to be observed;
2) In terms of chosen confidence level and accuracy range, determine N (the number of
observation needed)
3) Indentify the workers by name and list the operations and tasks to be studied;
4) Prepare a suitable observation sheet for recording the information
5) Prepare a planned time table of observation times
6) Choose a suitable position for taking the observations
7) Record each activity that is in operation at the instant it is observed together with the
worker involved and
8) Summarize and analyze the results.

2.6.3 Craftsman questionnaire

Craftsman questionnaire used to investigate the problems that adversely affect workers
productivity and motivation. The questionnaire usually requires craftsmen to estimate loss of
time due to various causes, ranking the severity of the problems and provide potential solutions
to productivity problems (Olomolaiye et al, 1998). The questions that are usually asked in the
questionnaire are specific for each job site and each craft. The areas that might be covered in this
questionnaire are (Oglesby et al, 2002).

 Craft area, type of work

 Materials availability, suitability and conditions
 Tool availability and conditions
 Equipment availability and conditions
 Rework amount and why necessary
 Crew interference with what craft and reason
 Causes of overcrowded work areas
 Availability of instructions and other information, what is missing and why
 Inspections, reasonableness and whether or not done at proper time and
 Hours per week lost from each of the above causes by category.

2.6.4 Foreman delay surveys

Foreman delay Survey (FDS) is one such method whereby production problems are exposed by
foreman’s through the identification of causes and quantification of delays in the daily routine of
their workforce (Olomolaiye et al, 1998). The primary purpose of this technique is to highlights
problems that are outside the responsibility and control of individual foreman (Oglesby et al,
2002). Depending upon circumstance FDS can be conducted in several ways such as daily, with
weekly reporting, daily for several weeks, or as needed (Oglesby et al, 2002). The results of FDS
will show the major causes of work delay for each craft and the number of hours lost and by
correlating the reported lost time with the causes of delays, project management can take action
to resolve the problems and to eliminate the delays (Alfeld, 1988). The survey is widely used
12
because it is simple and foreman can complete the form in a few minutes but the potential
weakness of this technique is found in the survey reliance on gross estimates by foreman of how
much time they actually lose and hence there is doubt on its validity (Alfeld, 1988).

2.7 Factors affecting labor productivity

In the construction industry, many external and internal factors are never constant and are
difficult to anticipate. This factors leads to continuous variation in labor productivity (Adavi,
2014)It is always have to make sure that there will be no effect in the plan and schedule of work
and does not cause delays because of the reduction of productivity. The consequences of these
delays could result in money losses when any of those external and internal factors become out
of control in any construction project.

Productivity is the outcome of the several inter-related factors (Adavi, 2016). There are many
factors that affect the productivity of labor in construction. Here are some factors which affects
in the labor productivity.

Technological factors

 Clarity of technical specification

 The extent of verification/change order during execution
 Coordination level among design disciplines
 Design complexity level
 Rework
 Site layout
 Inspection delay/stringent by the engineer
 Site restricted access

1) Human/Labor
 Lack of labor skills
 Increase of labor age
 Misunderstanding between labor and supervisor
 Lack of periodic meeting with labors
 Construction managers lack of leadership
 Proportion of work subcontracted
 Unrealistic scheduling and expectation of labor performance
 Shortage of materials
 Construction method
 Payment delay

2) Management TYPE A (management)

 Poor site management
 Poor communication
13
  Misunderstanding between labor and supervisor
 Lack of periodic meeting with labor
 Construction managers lack of leadership
 Lack of labor supervisor
 Working overtime
 Crew size and composition
 Unsuitability of storage location
 Accidents as a result of poor site safety programs

3) TYPE B material/equipment
 Material shortage
 Unsuitability of storage location
 Old and inefficient equipment
 Tools and equipment shortage
 Lack of places for eating and relaxation

4) External
 High/low temperature
 High humidity
 High wind
 Rain

5) Environmental
 Weather changes
 Project location
 Working with confined place
 Large project size

6) Motivation
 Payment delay
 Non provision of transport means
 Lack of financial motivation system

7) Schedule
 Working 7 days per week without taking holiday
 Poor work planning
 Overcrowding
 Misuse of time schedule

14
 8) Safety
 Ignore safety precautions
 Accident
 No safety engineer in site
 Insufficient light
 Working at high places

9) Quality
 Low quality raw materials
 High quality of required works
 Quality inspection delay

Guhathakurta et al (1993) found that there is a 100 percent agreement on the five most delay
causing factors between the US and Nigeria. The factors affecting productivity was

a) Lack of material
The reason for this problem in US were,
 Lack of crane or trucks or both in transport materials
 Too few laborer to retrieve orders from the warehouse
 Excessive paper work necessary for requesting
 Non existence of certain items at the site
 Receival of improper materials upon delivery to the work area
 Lack of proper planning by supervisors

The reason for this problem in Nigeria were,

 Cash flow problems experienced by contractors

 Lack of proper planning
 Site transporting difficulties
b) Lack of proper tools

The major causes for this problem in both US and Nigeria were,

 Poor quality tools

 Improper maintenance
 Insufficient tools

c) Repeat work
The major causes for this problem in both US and Nigeria were
 Change orders
 Poor quality of engineering drawings
 Poor instructions as results of misinterpretation of drawings and instructions

15
 d) Inspection delays
A considerable number of artisans both in the US and Nigeria blamed supervisors
incompetence and inspection delay as contributing to low productivity

Olomolaiye et al (1996) also compared productivity problems in Indonesia with other countries
obtained from literature. The comparison in under below table 2.1

Table 2.1 productivity problems rank (Olomolaiye et al 1996)

Production Indonesia Nigeria UK USA

Problems Rank Rank Rank Rank
Lack of material 1st 1st 1st 1st
Lack of tools 5th 3rd 5th 2nd
Interference 3rd 6th 2nd 5th
Absenteeism 4th 5th 6th 6th
Supervision delays 6th 4th 4th 4th
Rework 2nd 2nd 3rd 3rd

16
 CHAPTER 3

METHODOLOGY
3.1 Research Design
This basic research methodology carried out for obtaining research objectives as below flow
chart.
Research conceptualization
objective setting
L

Data collection I

E
Primary Data Secondary Data R

Productivity Study Area Select measurement T

measurement method U

Design Observation E
sheet
Productivity Contributory Unproductive
Time Time Time
Pilot study
R
Factors affecting
productivity E
Conducting V
Questionnaire observation
survey I

E
Data Analysis
W

Conclusion

Figure 3.1 Research methodology flow process

17
3.2 Research approach
Qualitative and Quantitative research approach will be used since the data collection will be
analyzed and presented with proportion.
Quantitative approach will be used for the measurement of labor productivity where as
qualitative approach will be used to find the factors affecting labor productivity.

3.3 Study area

Multistory building project of UN Peace Keeping center, kakani which is in under construction is
selected for the study. The location of construction project is 25 km far from the Kathmandu ring
road and there is no easy excess of materials availability in the local market for the construction.
Such running project in building construction is suitable to analyze the labor productivity and the
factors influencing it.

3.4 Sampling and Population

3.4.1 Research population

The studied population includes labors, contractors, client, consultant, related project experts and
the people who are closely monitoring the activities of the project.

3.4.2 Sample size

. The number of observations N according to the formula, given by (Cocrhan, 1997)

Z 2∗pq
N=
e2
Where,
Z= value for selected alpha level of .025 in each tail = 1.96
(the alpha level of .05 indicates the level of risk the researcher is willing to take that true
margin of error may exceed the acceptable margin of error)
e= acceptable margin of error for proportion being estimated = 5%
(p)(q)= estimate of variance= (0.5) (0.5) = 0.25

Hence,
1.962 ( 0.5 )( 0.5)
N¿ = 384 observation
( 0.05 )2

As per the supervisor of this project, total 40 labors are involved for rebar, RCC and Brickworks.
There are 4 skilled and 6 unskilled in rebar works, 6 skilled and 9 unskilled in RCC works, and 6
skilled and 9 unskilled in Brick works.
For the observation, four rounds during the day will make, each round of one hour, and this will
repeat for 6 days. There will be 2 skilled and 2 unskilled labors for rebar works, 3 skilled and 3
unskilled labors for RCC works and 3 skilled and 3 unskilled labors for Brick works. As the crew
will be 16, then the total number of observation is 4 x 16 x 6 = 384 observations.

18
3.5 Pilot study
Pilot study will be done to make sure that the identified activity elements are sufficient to record
all the activities involved in the operation being studied and modify it if necessary.

3.6 Data collection

Both primary and secondary data are required for the fulfillment of the purpose of this thesis.
Primary data will be collected by field visit and direct observation to the activities of the
personnel related to the project. Questionnaire will be developed which will include participant
from clients, consultants, contractors, experts and local people who are directly observing the
project activities.

3.6.1 Primary data collection

3.6.1.1 Performance measurement

There are different techniques (time study, activity sampling, craftsman questionnaire, and
foreman questionnaire) for the measurement of productivity of labor, in this research it is
decided to use activity sampling because this technique has the following advantages (Lema,
1995)

 Observation skills in this technique are not as demanding as those required to accomplish
similar objectives using other techniques such as time study,
 It provides information on the extent of labor utilization on construction sites,
 It is possible to identify in detail the sub activities involved in the production process and
 It is possible to attach statistically quantifiable inferences to the results of the study.

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 Table 3.1 Sample of activity sampling study sheet
Labor Productivity Measurement Research
Data collection sheet
Project Title
Activity: Location:
Day: Time:
Skilled labor numbers: Unskilled labor numbers:

No Time A B C D Notes
1 10:00
2 10:05
3 10:10
4 10:15
5 10:20
6 10:25
7 10:30
8 10:35
9 10:40
10 10:45
11 10:50
12 10:55

Table 3.2 Element codes and description

Code Description
A Skilled labor (1)
B Skilled labor (2)
C Unskilled labor (1)
D Unskilled labor (2)

3.6.2 Questionnaire design

A well designed questionnaire will be developed with close ended questions. A questionnaire
will have two sections. The first section will be respondent profile and the other sections will
have different factors affecting labor productivity.
3.6.2 Secondary data collection
Secondary data will be from books, journals, norms, from project corporate office.

3.7 Data analysis

Productivity is calculated with the ratio between output and input.
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 Output
Labor productivity =
Input
For the measurement of labor productivity work sampling technique will be used.

This study will use ordinal scale and for analyzing the ordinal scale Relative Important Index
(RII) will be used. The RII will be computed using following equation (Lim et al, 1995).

5 n5+ 4 n4 +3 n3 +2 n2 +n1
RII =
5( n1+ n2 +n3 +n 4 +n5 )
x 100

Where,
n1= number of respondent who answer “little effect”
n2 = number of respondent who answer “some effect”
n3 = number of respondent who answer “average effect”
n 4= number of respondent who answer “high effect”
n5 = number of respondent who answer “very high effect”

3.8 Data presentation

The information obtained from the analysis of data will be presented on charts, graphs, tables..

3.9 Research matrix

S. Objectives Data required Collection Data Expected

No tools analysis outcome

1 Measurement of labor Time, no. of Observation Productivit Productivity

productivity labor required. Sheet y analysis time,
contributory time
and unproductive
tome
2 Comparison of skilled Outcome of Tables Productivit Differences of
and unskilled labor skilled and y analysis productivity
unskilled performance of
productivity skilled and
unskilled labor
3 Factors affecting labor Internal and Close ended Relative Key factors
productivity external questionnaire Importance influencing labor
factors Index productivity

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