BUSINESS PROCESS MANAGEMENT AND KEY PERFORMANCE INDICATORS IN REAL ESTATE CONSTRUCTION

By

Le Anh Thai

Abstract

             

The controlling of construction processes is important to achieve project’s goals. Many companies now start look for solutions to optimize their own business process. In order to develop in business area, every organization has to continually finding solution for business to act in term of effectiveness and efficiency. The question to save cost and business improvement is the effort so that organizations must consider if they want to maintain sustainable development. How to ensure that the organization is operated effectively and whether the organization is taking competitive advantage? These problems only answer if the organization know their own business processes and have clearly measure, monitor and analyzes its performance.

This report is going to make effort to understand the applied of Business Process Management (BPM) and Key Performance Indicators (KPIs) which should be implement in construction stage to measure the effectiveness and efficiency of the construction process.

  

Executive summary

Rationale of research

This research has been conducted to identify key performance indicators to improve construction process in real estate project.

Objectives of study

To study business process management (BPM) in real estate construction projects, to identify the indicators for improving construction process.

Methodology  

The exploratory research method is used to review theory of business process management and performance management of construction processes.

Findings and conclusion

In applying BPM in the construction stage, the most important is to identify main phase, sub-process to be delivered. The main process need to focus control the output, and also control issues in sub-processes. After the main or critical processes were identified, it is necessary to assess the process performance. The key performance indicators is defined to evaluate whether the process performance comply with organization’s goals and objectives.

For effective implement BPM in construction stage, we should understand all the process of construction stage. And identify critical process to focus controlling. No need to control all the process in order to reduce expense for measurement activity, but the result still acceptable. There is very little guideline in selecting which indicators is appropriate lead to achieve project objective and organization‘s goal. The measurement process should regularly audit to guarantee the transparency. The follow indicators is the most applied in measuring the construction process.

Performance measurement allows an organization to determine what is working and what is not. In order to make effective performance measurement and to improve construction process, one must identify appropriate Key Performance indicator to focus on. In construction process generally, and real estate construction process, it is difficult to develop an agreed set of KPIs, because of the nature of construction industry.  

Recommendations

• Cost performance: It shows how the process consume budget. This performance indicator also tells about how effective the budget control.
• Time performance: this KPI tell whether the process has completed on planned schedule.
• Quality performance: this measurement shows the degree of satisfaction of the process to the requirement.