PRODUCTIVITY

IN CONSTRUCTION INDUSTRY
1.0: INTRODUCTION
• According to Construction Industry Development Board (CIDB) defines productivity
is the ability to produce output from a given set of inputs. Then CIDB stated that
Construction Industry has been stagnant since the 1980's. The productivity figure as
measured by Gross Development Profit (GDP) or employee are measured the
productivity figure get the result around RM 7,000. This amount has remained
constant whilst all other sectors have been showing increases in productivity.

• From above statement stated that labour productivity can measure by the profit from
the productivity achievement by the labour maybe can count within their works
performance every week or monthly. Basically, the productivity in the Construction
Industry is not optimizing the usage of resources, combined with the fact that
construction processes are not very efficient and not successfully.
2.1: PROBLEM ISSUES
1. Lack of manpower ;
- Workers from others country like Indonesia, Bangladesh and
Myanmar. From that the contractor must have legal contracts.
- Lacks of manpower have less local workers.
- The workers work at construction industry does not have any experience.
 
2. Quality of Productivity ;
Lack of trained manpower.
Many of contractors in Malaysia do not have many skills in engineering
construction.
Do not follow the schedule.
Do not have a good management.
 
3. Do not finish the project on time ;
Do not follow the timetable.
Causes by a weather.
Problem with contract workers.
 
4. Productivity Measurement
- An overall conception which is difficult to express or to measure. It is sometimes
expressed in terms of output from labour, or from services, or from capital invested.
- Measurements of some or all of the inputs and outputs of the industry; they failed
to combine these measurements into any satisfactory measure of efficiency.
- The ratio is easy to compute if the unit uses a single input to produce a single
output.
 
5. Productivity Efficiency: To measure the average productivity of labour, and to
use this as a measure of efficiency.
- Productive efficiency measurement hypothesized that efficiency could be
dichotomizes into two sub-components reflecting the physical efficiency of the input-
output production transformation (the technical component) and the economic
efficiency of optimal factor allocation (allocative efficiency).
- The purely technical, or physical, component refers the ability to avoid waste by
producing as much output as input usage allow, or by using as little input as output
production allows.
- Thus a technically inefficient producer could produce the same outputs with
less of at least one input, or could use the same inputs to produce more of at least
one output.
2.2: PRODUCTIVITY TRENDS
IN THE CONSTRUCTION
INDUSTRY
 2.2.1: Labor Productivity: Productivity Trends 1987-2008

From 1987 to 2004, labor productivity in construction tracked overall trends in the
economy. In the past four years, the boom in construction appears to have reduced labor
productivity. Weak productivity growth in the economy as a whole was mirrored in the
construction industry.
2.2.2:. Labor Productivity: Productivity Trends 1997-2007

The picture changes somewhat when we measure output using

a ‘chained dollar deflator ‘and labor input in hours, rather than
employment
2.2.3: Labour Productivity: Construction 1997-2007 - A Closer Look

1997-2001: rising productivity (slack labour conditions) 2001-2003: stagnant

productivity as labour markets tightened 2004-2007: falling productivity as
less skilled labour is hired, equipment and materials shortages emerge, and
management resources are ‘stretched’
2.2.4: Labor Productivity: Estimated Productivity Trends Compared
Labour Productivity: Different Measures = Different Implications

•Different measurement procedures support radically different

conclusions.
•The impact of measurement problems becomes more significant, the
longer the time series.

Thus:

•Using 1987-2008 as the measurement period, using employment as the

measure of labour input, and using a ‘constant dollar’ deflator suggests
zero or negative productivity growth in construction, i.e., a systemic
productivity problem.

•Using 1997-2007 as the measurement period, using hours as the

measure of labour input, and using a ‘chained dollar’ deflator suggests a
moderate productivity lag (largely the result of 2007 data), but does not
support claims of a systemic productivity problem in the construction
industry.
 2.3: CONCLUSION
In conclusion, to increases the productivity in the construction
industry, all the contractor must take more local workers and
have a good technical skill in construction. It is easy to us to do
work and the project can be finish on time. We must to repair
our weak in management to have a quality of productivity.