Performance assessment of construction companies integrating key performance indicators and data envelopment analysis

• Type: Article in International Scientific Journal
• Date: 2010

Authors

Isabel M. Horta (Author) FEUP; Ana S. Camanho (Author) FEUP; Jorge Moreira da Costa (Author) FEUP

Journal

Title: Journal of Construction Engineering and Management - ASCE

Vol. 136 No. 5

Pages: 581-594

ISSN: 0733-9364

Publisher: ASCE

Indexing

ISI Web of Knowledge - 67 Citations

ISI Web of Science

Scopus - 85 Citations

Scientific classification

FOS: Engineering and technology > Civil engineering

CORDIS: Social sciences > Economics > Management studies > Industrial management

Other information

Authenticus ID: P-003-71Z

DOI: 10.1061/(asce)co.1943-7862.0000145

Abstract (EN): The web benchmarking systems broadly used in the construction industry (CI) are designed to provide results based on key performance indicators (KPIs). No insights concerning organization overall performance and improvements targets are available. This research aims to fulfill this gap using data envelopment analysis (DEA) as a method to complement the information provided by a set of KPIs. The methodology proposed is useful to all organizations involved in benchmarking routines. To enable a more realistic assessment of CI companies, two types of DEA models were used, one allows factor weights to vary freely and the other includes weight restrictions. These models assign an efficiency score to each organization, identifying efficient organizations and providing performance improvements targets for the others. To enable suggesting targets for all organizations, expert opinion was used to specify virtual units which were included in the efficiency assessment to define a practical frontier located beyond the productivity levels of the original DEA frontier. Based on a sample of 20 Portuguese leading contractors, the Portuguese web benchmarking system for CI, icBench, was used to demonstrate the advantages of integrating the DEA method with KPIs benchmark scores.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 14