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Critical Factors Influencing Construction Productivity in Thailand
Arun Makulsawatudom,* Margaret Emsley* and Kuldej Sinthawanarong**
Abstract and 68.1%, respectively of the 17512 organisations
Factors affecting construction in Thailand were in the industry. Furthermore, these large companies
disclosed in previous studies carried out by the authors, have 21.5% of the market share, while the small
which confirmed that the construction industry in companies, major players in the industry, only have
Thailand has experienced productivity problems like 9.9% of the market share.Considering all organisations,
many other countries [1-2]. The objective of this paper 8% are involved in site preparation, 75.1% and
is to identify factors that should be focused upon, when 9.3% have their core business in civil engineering
productivity improvement is to be initiated. To do so, 34 and building construction respectively, while 7.1% and
project managers working in the construction industry 0.5% are involved with building completion and plant
in Thailand completed a structured questionnaire hire, respectively [3].
survey and the factors were ranked according to In respect of the workforce, the construction
their perception of their levels of influence and their industry employs 1.28 million of the 33.00 million
potential for improvement based on their overall available workers, of which 80-90% are males, and
experience in managing projects in the industry. To has a turnover of 311,672.1 Million Baht (1£ = 64.54
supplement the questionnaire data, in depth interviews Baht in July 2001), which is about 4% of GDP. During
were conducted with some project managers. This the last 8 years, industry contribution to GDP has
study is intended to create the foundation for further ranged between 3 and 8% [3]. Any improvement in
study of construction productivity measurement and construction productivity would, consequently, assist
improvement in Thailand, which aims to lead to overall the industry and the country to make significant
productivity improvement. financial savings.
Keyword : Productivity, Productivity Improvement, 2. Data Collection
Rank Index Approach This study was conducted in Thailand between
November and December 2000, with project managers,
1. The Construction Industry in Thailand working at management level, as the target group.
Like many countries, the construction industry A structured questionnaire survey was selected to be
in Thailand has been dominated by a small number of the study main instrument, as it provided information
large companies (>1,000 employees) and a large number quickly and cheaply. Each participant was asked to
of small companies (<20 employees), representing 0.2% rate the factors affecting productivity on a scale from 0
* Department of Civil and Construction Engineering, University of Manchester Institute of Science and
Technology (UMIST).
** Department of Civil Engineering, Faculty of Engineering, King Mongkut’s Institute of Technology North
Bangkok.
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(no influence) to 5 (very much influence) and to rate 6 years, and almost one third (32%) for over 10 years,
each factor in respect of its potential for productivity reflecting that a project manager in Thailand has a
improvement on a scale from 0 (no potential) to 4 fairly high commitment to his organisation. 83% of
(very high potential). In addition, respondents were the respondents work for main contractors, while
welcome to add and rate any further factors that they 3% are sub-contractor labour only. Like the working
believed have an effect on construction productivity. experience of project managers, organisations that
A total of 34 questionnaires was completed. Then, work in the residential field include the least number
before a relative importance index (RII) was applied of respondents, 35%, due to the same reason as
to prioritise the severity of the factors, the raw rankings discussed previously. In respect of geographic location,
were multiplied together to produce a critical factor Bangkok (the capital) and boundary has the most
index (CFI). Finally, in-depth interviews were conducted respondents (91%) and the eastern part of Thailand,
with project managers. which has successfully been promoted as an industrial
zone during the last two decades, has the second
3. Respondents’ Characteristics highest number (76%). In addition, 41% of the
Most respondents (97%) are male. This is not organisations usually subcontract at least 50% of
surprising as the construction industry in Thailand the project value to subcontractors. In order to
has traditionally been male dominated. According identify any relationship between company turnover
to project managers interviewed, it takes 12 years and percentage subcontracted and geographic location
for an inexperienced engineer to gain adequate of organisations, Spearman correlation coefficient
experience to become a project manager. Therefore, was employed, which indicated that there are rank
it is reasonable that 85% of project managers have correlations between the two factors and turnover.
at least 11 years experience. In addition, it is not This means the higher a company’s turnover, the
surprising that 88% of respondents are over 34 more jobs are subcontracted in a project, and the
years old, as engineers in Thailand usually graduate more geographic locations they work in.
between 22-24 years old. During the last two decades,
the majority of construction works have been public 4. Factors Affecting Productivity and their Potential
infrastructure projects. Consequently, civil works for Improvement
includes the maximum number of experienced Factors that influence construction productivity
respondents. However, the residential field has only were gathered from a literature review of previous
started to grow in the last 8 years, so contains the studies [4-10], and project managers were asked to
least number of experienced project managers. 68% express their opinion on the influence of the factors
of the project managers have first degrees, with the (from 0 to 5) and their potential for improvement (from
remainder qualified at masters level and none at PhD 0 to 4). The raw rankings were multiplied together to
level. Limited numbers of universities available for produce a critical factor index (CFI), which were then
masters degrees, and demand for engineers in the last summated and divided by 26 (the number of possible
two decades, has encouraged new graduates into the values for the CFI) to give a relative importance
work place. However, the relatively high number of index (RII). Table 1 gives the factors ranked according
masters graduates is due to the economic recession, to their RII.
providing project managers with more time to upgrade
their qualifications. Over half of the project managers 4.1 Lack of Material
(59%) have worked for their organisation for at least With a RII of 0.405, lack of material was
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Table 1 Critical factors influencing the construction industry
Rank Factors Influence ranked score Potential ranked Total RII
score CFI
0 1 2 3 4 5 0 1 2 3 4 score
1 Lack of material 0 3 5 2 8 16 0 1 14 14 5 358 0.405
2 Incomplete drawing 0 2 3 10 12 7 0 1 13 14 6 330 0.373
3 Incompetent supervisors 0 3 7 7 10 7 0 2 11 14 7 329 0.372
4 Lack of tools and equipment 0 4 4 10 12 4 0 1 12 16 5 309 0.350
5 Absenteeism 0 3 11 10 8 2 0 2 10 19 3 307 0.347
6 Poor communication 0 2 9 12 4 7 0 3 11 13 7 301 0.340
7 Instruction time 0 1 8 11 9 5 0 1 11 16 6 299 0.338
8 Poor site layout 0 5 7 8 10 4 0 1 13 14 6 298 0.337
9 Inspection delay 0 0 6 14 10 4 0 1 13 19 1 294 0.333
10 Rework 0 6 5 12 7 4 0 1 12 15 6 291 0.329
11 Occasional working overtime 1 2 11 11 7 2 0 4 7 18 5 266 0.301
12 Change orders 0 2 7 13 11 1 0 5 13 13 3 265 0.300
13 Tools/equipment breakdown 0 5 8 13 6 2 0 1 13 15 5 261 0.295
14 Specification and standardisation 1 6 9 8 7 3 0 2 11 16 5 261 0.295
15 Interference from other trades 0 3 12 12 5 2 0 1 18 11 4 245 0.277
or other crew members
16 Workers turnover and changing 0 2 16 11 4 1 0 6 9 13 6 233 0.264
crewmembers
17 Scheduled working overtime 2 6 9 12 4 1 1 2 11 15 5 226 0.256
18 Safety (accidents) 0 10 12 6 1 5 0 3 10 16 5 220 0.249
19 Poor site conditions 0 5 4 13 7 5 2 6 19 6 1 207 0.234
20 Changing of foremen 2 6 12 10 2 2 0 4 11 14 5 204 0.231
21 Overcrowding 0 8 9 7 7 3 0 9 16 6 3 190 0.215
22 Shift work 7 5 7 11 3 1 5 5 7 14 3 182 0.206
23 Weather 1 5 15 9 2 2 7 11 12 4 0 114 0.129
highlighted as the most critical factor affecting progress payments when materials have been
productivity. This is not surprising, as materials are delivered, implementing better sequences of work,
essential for the construction process. The project examining materials to be used and initiating material
managers revealed that this is mainly due to con- management meetings to improve co-ordination between
tractors’ liquidity problems, where many contractors site and office.
have insufficient finance to procure the necessary
materials. Other causes mentioned were imported 4.2 Incomplete Drawing
material and poor co-ordination between site and The interviewed respondents identified that
office. In respect of its potential for improvement, incomplete drawing has a high impact on productivity,
although the project managers believed there is little causing delays for revision or clarification of
potential, they suggested asking the client to make drawings and specifications. Therefore, it was ranked
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the second most crucial factor, with a RII of 0.373. 4.5 Absenteeism
The sole main cause of the factor is that clients Respondents ranked this factor fifth, as a
provide limited time and budget for designer to crucial factor affecting the construction industry,
complete the design in order to expedite the bidding with a RII of 0.347. The factor’s peak impact occurs
process. As a result, drawings are often incomplete, seasonally, which is usually around May to June
unclear, impractical and contain conflicts. In respect and November to December of each year, since
of potential for improvement, the survey disclosed craftsmen, who mostly are agriculturists, have to go
that incomplete drawing has high potential. home to do paddy farming. Apart from these
periods, International, Thai (Songkarn) and Chinese
4.3 Incompetent Supervisors New Years are occasions when the work on many
This factor was ranked third in respect of its sites is almost virtually stopped for one week,
influence on construction productivity, with a RII because of absenteeism. Causes of the factor are due
of 0.372. Incompetent supervisors work slowly to part time workforces, who come to work in the
and may be responsible for defective works and industry only when they are free from cultivation,
inappropriate application of tools and equipment. and irresponsible craftsmen, who, for example, drink
One cause of this factor is poor human resource alcohol and gamble overnight and, accordingly, they
management, where inappropriate people are cannot come to work the next day, or who are just
promoted to a supervisory role. The project managers absent to spend their money, after pay day.
believed that there was considerable potential for
productivity improvement in respect of incompetent 4.6 Poor Communication
supervisors. By implementing employee in-house Poor communication was ranked sixth, with a
training and ensuring supervisors were correctly RII of 0.340. This factor allows defective works to
selected, the interviewed respondents were confident occur due to incompetent communication skill. In
the effect of incompetent supervisors on productivity order to overcome poor communication, the
could be much reduced. interviewed respondents advised that, instead of
informal verbal communication, documentation such
4.4 Lack of Tools and Equipment as work procedures, manuals, charts and guidelines
This factor was ranked fourth, with a RII of should be used.
0.350 and is caused by inadequate management,
for example, insufficient provision of tools, ignorance 4.7 Instruction Time
of maintenance programmes leading to inefficient With a RII of 0.338, instruction time was
use and the use of old and obsolete equipment and ranked seventh. This factor causes delays and,
shortage of spare parts. In addition, an incompetent although jobs are not stopped, they can move
project manager, who, for example, overestimates forward only slowly and may be crucial if jobs are
the capacity of a machine, resulting in insufficient on the critical path. According to interviews with
numbers of the machine being employed, was also the project managers, the main cause is inadequate
mentioned. With regard to productivity improvement, management, for example, insufficient numbers of
the occurrence of lack of tools and equipment can foreman employed in order to decrease expense. In
be reduced by implementing preventive maintenance, addition, the interviewed respondents suggested ideas
as the maintenance cost is small when compared with such as increasing the number of engineering officers,
the costs incurred when tools/equipment breakdown. providing substitute field supervisors and proceeding
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with other jobs, when a job is stopped, which may needed for construction. Causes of rework can be
dramatically decrease the effect of instruction time attributed mainly to incompetent craftsmen, and
on productivity. incompetent supervisors. Insufficient working skill
and knowledge of drawings are examples of an
4.8 Poor Site Layout incompetent craftsman, while lack of experience,
This factor was ranked eighth, with a RII of leading to deficient supervision, is an example of an
0.337, in respect of its significance on construction incompetent supervisor. Others causes of rework
productivity. Poor site layout interrupts work flow, advised were change order and incomplete drawing.
for example, material search difficulties, equipment In respect of potential for productivity improvement,
transportation difficulties, or access problems. In the interviewed project managers suggested the
addition, the factor may cause avoidable delays such provision of experienced supervisors which would
as time lost due to, for example, too long a distance overcome the two major causes of rework, incompetent
from the working area to the toilets, when 20 craftsman and supervisor, specified above.
manhours a day could be lost if it takes 2 minutes
each way per trip for 100 craftsmen for 3 trips per 5. Conclusion
day. An incompetent project manager, who has This study has found that there have been
insufficient working experience in order to sequence construction productivity problems in Thailand, and
work properly, is the only cause of poor site layout disclosed the ten most significant factors affecting
specified by the project managers. construction productivity in Thailand as lack of
material, incomplete drawings, incompetent super-
4.9 Inspection Delay visors, lack of tools and equipment, absenteeism, poor
Respondents ranked this factor ninth in respect communication, instruction time, poor site layout,
of its impact on productivity, with a RII of 0.333. inspection delay and rework. However, various sug-
Inspection delay may delay job progress, which, gestions were raised in order to improve productivity
similar to instruction time, may be acute for jobs by alleviating the effect of adverse factors. Improve-
on the critical path. The project managers further ment of an organisation’s productivity in Thailand
specified that causes of inspection delay are an should now be focused on these ten factors, since this
incompetent project manager, such as one who does will not only make an organisation more profitable,
not realise which jobs are ready to be inspected, but also increase its chance of survival in the industry,
does not prioritise jobs for inspection or does not especially as there is very high competition due to the
facilitate co-operation between the contractor and economic crisis. If improvement in many organisations’
inspector, and an irresponsible inspector, such as one productivity can be facilitated, overall construction
who is not punctual, abuses authority and ignores productivity in Thailand will also be improved. There-
jobs. Similar to lack of material, while this factor has fore, using this research as the foundation, future
considerable effects on productivity, it has low studies will concentrate on productivity improvement.
potential for productivity improvement.
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