MEASURING FOR SUCCESS

4 April 2006

The Construction Products Association has launched Measuring for success, a report which looks at the benefits to manufacturers of using Key Performance Indicators (KPIs).  The study, produced in partnership with Constructing Excellence and the Department for Trade & Industry, provides recommendations for manufacturers in the Construction Products Industry, who are considering setting up their own KPIs and for customers demanding evidence of their supplier’s improvements.   

The Construction Products Industry Key Performance Indicators allow a company to measure its performance and compare its results to similar manufacturers and suppliers, and as Roy Harrison, President of the Construction Products Association comments, ‘is one of the easiest and most effective ways to show improvement.’  Harrison continues to explain that the new report ‘demonstrates the clear advantages of measuring those KPIs which are critical to the success of a manufacturing business - customer satisfaction, environment, and people’. 

In support of the publication, Peter Commins, Chairman of Construction Confederation states that ‘the commitment by the construction products industry to improve their performance through the use of Key Performance Indicators is both welcome and laudable.’

Measuring for success provides a clear Action Plan for what manufacturers and suppliers need to do, and includes case studies from three diverse companies in the manufacturing industry - Hunter Plastics, Ibstock and Weber Building Solutions - which consider the different non-financial indicators.  The case studies show how; KPIs have been successfully introduced; performances monitored against set targets; and improvements put in place.  This has resulted in successful client-supplier relations, reduced environmental impact, and better staff turnover.  All three companies agreed that the Association’s model indicators formed a good basis for a working set of KPIs, which can be added to or modified, to suit the needs of the individual business.  It was also agreed that once set up, a KPI system runs within the company’s processes and does not take up much resource.  A company that does not yet use KPIs must be aware that its competitors probably do.  Lessons from the case studies include the need for leadership at board level, implementation of transparent, realistic and easy to collect KPIs, and the need to involve employees to deliver improvements. 

Roy Harrison hopes that ‘having read these case studies, companies that are not currently part of the CPI KPI network will recognise the real benefits on offer and will want to participate.’

The Association, with support from DTI and Constructing Excellence, annually produces the performance results for fifteen key performance indicators developed especially for the construction products industry, focusing on customer satisfaction, environment and people issues.  These indicators provide a useful starting point for companies to begin measuring their performance and benchmark against the industry average.  The next set of results will be published in June 2006.