Improving labour productivity in process construction maintenance and shutdown/turnaround projects

Abstract

Construction labour is a critical cost factor which affects the profitability of petrochemical companies and contractors. Improvement in labour productivity is indispensable for the petrochemical industry to achieve sustainable development. However, the industry lacks consensus in measuring labour productivity in construction, maintenance and shutdown/turnaround projects. This engenders a need for developing productivity improvement practices applicable to all projects. This article proposes productivity improvement solutions based on a study conducted on 17 projects at five petrochemical plants in Singapore. This research team developed and used a modified Activity Analysis method suitable to the site conditions and the maintenance and shutdown/turnaround activities which are seldom studied. The study was conducted over two cycles to assess the current trend in labour productivity, identify productivity barriers, implement improvement solutions and assess their effectiveness. The aggregated direct work percentage for the projects from the first cycle of data collection was found to be 29.5%. After implementing the improvement strategies proposed by this study, the direct work percentage has increased to 35.6% in the second cycle. The assessment of labour productivity through Activity Analysis in maintenance and shutdown/turnaround environments is an important contribution of this study. This article provides a basis for benchmarking labour productivity in the Singapore petrochemical industry.

Keywords:

• Productivity
• benchmarking
• labour
• activity analysis

Acknowledgement

Activity analysis was implemented in Singapore, in collaboration with the Construction Industry Institute, the University of Texas at Austin (UT), and National University of Singapore (NUS), as part of a research project funded by the Singapore Economic Development (EDB) and co-sponsored by representatives of the Singapore process construction and maintenance sector and the energy and chemical industry.

Data availability statement

Data generated or analysed during the study are available from the corresponding author by request.

Disclosure statement

No potential conflict of interest was reported by the authors.