Improving labour productivity in process construction maintenance and shutdown/turnaround projects

Abstract

Construction labour is a critical cost factor which affects the profitability of petrochemical companies and contractors. Improvement in labour productivity is indispensable for the petrochemical industry to achieve sustainable development. However, the industry lacks consensus in measuring labour productivity in construction, maintenance and shutdown/turnaround projects. This engenders a need for developing productivity improvement practices applicable to all projects. This article proposes productivity improvement solutions based on a study conducted on 17 projects at five petrochemical plants in Singapore. This research team developed and used a modified Activity Analysis method suitable to the site conditions and the maintenance and shutdown/turnaround activities which are seldom studied. The study was conducted over two cycles to assess the current trend in labour productivity, identify productivity barriers, implement improvement solutions and assess their effectiveness. The aggregated direct work percentage for the projects from the first cycle of data collection was found to be 29.5%. After implementing the improvement strategies proposed by this study, the direct work percentage has increased to 35.6% in the second cycle. The assessment of labour productivity through Activity Analysis in maintenance and shutdown/turnaround environments is an important contribution of this study. This article provides a basis for benchmarking labour productivity in the Singapore petrochemical industry.