ANN-based prediction intervals to forecast labour productivity

Abstract

PurposeThis study aims to propose the adoption of artificial neural network (ANN)-based prediction intervals (PIs) to give more reliable prediction of labour productivity using historical data.Design/methodology/approachUsing the proposed PI method, various sources of uncertainty affecting predictions can be accounted for, and a PI is proposed instead of a less reliable single-point estimate. The proposed PI consists of a lower and upper bound in which the realization of the predicted variable, namely, labour productivity, is anticipated to fall with a defined probability and represented in terms of a confidence level (CL).FindingsThe proposed PI method is implemented on a case study project to predict labour productivity. The quality of the generated PIs for the labour productivity is investigated at three confidence levels. The results show that the proposed method can predict the value of labour productivity efficiently.Practical implicationsThis study is the first attempt in construction management to undertake a shift from deterministic point predictions to interval forecasts to improve the reliability of predictions. The proposed PI method will help project managers obtain accurate and credible predictions of labour productivity using historical data. With a better understanding of future outcomes, project managers can adopt appropriate improvement strategies to enhance labour productivity before commencing a project.Originality/valuePoint predictions provided by traditional deterministic ANN-based forecasting methodologies may be unreliable due to the different sources of uncertainty affecting predictions. The current study proposes ANN-based PIs as an alternative and robust tool to give a more reliable prediction of labour productivity using historical data. Using the proposed method, various sources of uncertainty affecting the predictions are accounted for, and a PI is proposed instead of a less reliable single point estimate.