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FOUNDATIONS
OF
CONTROL
AND
MANAGEMENTSCIENCES
No.8
2007
A.MetriBHIMARAYA
*
DEVELOPMENTOFBENCHMARKINGTOOL
FORCONSTRUCTIONINDUSTRY
Inrecentyears,theconceptofbenchmarking,introducedtoidentifyandadopt/adaptthe
industrybestpracticeswithaviewtoenableconstructionfirmstoachievehigherqualityin
productsandcustomerservices,hasattractedconsiderablemanagerialattentionbecauseof
itshugepotentialcompetitiveimpact.Thispaperpresentsabenchmarkingbestpracticetool
toprovidethebestpracticesanddirectionsforimprovingqualityinconstructionindustry.
Thistooldevelopedisbasedontheliteraturereviewandbestpracticesurveyof70large
constructionfirmscoupledwithin-depthinterviewsofmanagersoffourtopIndian
constructionfirms.Theproposedbenchmarkingbestpracticetooloffersgoodperformance
whenappliedtoavarietyofstandardproblemsrelatedtoconstructionprojects.
Keywords:constructionindustry,quality,performance,benchmarkingtool,
andprojects
1.INTRODUCTION
Constructionindustryisoneoftheoldestindustries,retainingitsroleasacore
economicactivityfromtheearlydaysofhumancivilization.Indevelopedand
developingcountries,constructionindustrymakesavitalcontributionintherange
ofaround5to7percenttotheGDP[14].Itisthesecondlargesteconomicactivity
inIndia,nexttoagriculture.Itemploys31millionpeopleeveryyearandproduces
goodsandservicesworthRs.2,100,000million[10].Healthyconstructionindustry
isvitaltothedevelopmentofacountry;thereforeitcanbelookeduponas
abarometerofacountry’seconomy[12].
*Ph.D.Chairman,PostGraduateProgrammeinManagement,ManagementDevelopment
InstituteMehrauliRoad,Sukhrali,Gurgaon122001,INDIA,fax:+91-124-2340147
(e-mail:metri@mdi.ac.in).
