BENCHMARKING and the ENVIRONMENTAL MANAGER 1 THE PROJECT LIFE CYCLE Identification of need Demolition RISKS •ENVIRONMENT •HEALTH & SAFETY •FINANCE •QUALITY Operate & Maintain Construction Planning RISKS Design 2 OBJECTIVES OF LECTURE 1. 2. 3. To demonstrate how a company’s risk performance can be compared to others. To demonstrate how a company’s risk performance can be measured. To apply the above to the work of the Environmental Officer 3 INTRODUCTION TO BENCHMARKING & KEY PERFORMANCE INDICATORS (KPI’s) 4 WHAT IS BENCHMARKING? Benchmarking is a method of improving performance in a systematic and logical way by measuring and comparing performance against others, and then using lessons learned from the best to make targeted improvements. It involves answering the questions: "Who performs better?" "Why are they better?" "What actions do we need to take in order to improve our performance?“ The recent surge of interest has been encouraged by the publication of sets of national Key Performance Indicators that allow companies to measure their performance simply and to set targets based on national performance data. 5 WHAT IS A BENCHMARK? A benchmark is "the best in class" performance achieved for a specific business process or activity. It is performance that has been achieved in reality, and can be used to establish improvement goals. Note: the term 'benchmark' is sometimes used incorrectly to refer to average performance or even to refer to a minimum acceptable standard. Care should be taken to use the term correctly 6 What is a Key Performance Indicator (KPI)? A KPI is the measure of performance of an activity that is critical to the success of an organisation. KPI Wallcharts are available for: All Construction Respect for People Environment Health & Safety Construction Consultants M&E Contractors Construction Products Industry 7 Key Performance Indicator (KPI) charts Each wallchart contains KPI graphs which can be used by organisations to benchmark their performance against the rest of the industry or sector. Regular measurement using appropriate KPIs enables an organisation to set and communicate its performance targets, and to measure whether it is achieving them. 8 Typical KPI Charts 9 Client use of KPI’s Methods of procurement in the UK have changed since the mid 1990’s. Many major clients now use Partnering, Framework Agreements, Term contracts Whole life costing of projects now in common use. Quality becoming more important than lowest tender KPI’s ARE A MEASURE OF A COMPANIES QUALITY 10 Risk Assessment and Risk Management in the ISO 14000 Series Environmental Management System Framework The Environmental Officer 11 ISO 1400 ISO 14000 model is tool for an organization to keep aware of the interactions that its products and activities have with the environment and to achieve and continuously improve a desired level of environmental performance. Note that ‘environment’ here is taken in the widest context. Construction companies also have to manage the ‘green’ environment created by their designs or construction activities. 12 Environmental KPI for Construction 13 Environmental KPI for Construction 14 Environmental KPI for Construction 15 Environmental KPI for Construction 16 The Environmental Officer – Site specific activities 17 Reduce Waste A DUTY OF CARE The underlying concept of the European Environmental legislation is that the polluter pays. The Environmental Protection Act (EPA) imposes a "duty of care" on all waste producers and disposers. Everyone produces waste, and therefore everyone is responsible for the disposal of their waste. The construction industry is inextricably linked into the entire length of the waste chain and produced about 30% of all UK landfilled waste in 1999. The best solution to the waste disposal problem is to create less waste through proper management of resources and the production process. 18 Recycle Materials 19 Protect Groundwater Construction is the second largest pollutor of groundwater and rivers over site run off by chemicals seeping through the ground 20 Protect local streets Wheel washers are required on sites that would otherwise allow ‘muck’ on local roads 21 Other Environmental Protection Measures hoardings – reduce noise and dust outside the site, provide H&S barrier Restricted site working hours – prevents noise during ‘unsocial’ hours, restricts vehicular access . Water spray – reduces dust Equipment mufflers and working methods can reduce noise Site 22 Conclusions 1. 2. 3. 4. KPI’s allow a company to measure it’s performance and risk against competitors. KPI’s are a measure of a company’s quality systems. KPI’s are available for Environmental Management. Construction can be a major environmental polluter unless properly managed 23