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Articles

Estimating professional service productivity: theoretical model, empirical estimates and external validity

, , &
Pages 482-495
Received 19 Jan 2013
Accepted 12 Aug 2013
Published online: 23 Sep 2013
 

Productivity of professional service is difficult to measure, due to the high degree of customization, variable throughput time, and high degree of labor intensity. Using the complex design engineering for large construction projects as an example, this study reviews the common professional service productivity measurement problem of determining surrogate measures of inputs and outputs. This research was sponsored by the construction industry, and required a team of academic and construction executives to work closely to develop a procedure and a comprehensive empirical model for measuring engineering design productivity. The model addresses the complexity of productivity estimation arising from the interactions among the multiple outputs and variability of labor hours, both requiring surrogate measures. The mathematical model was statistically estimated using data from a large number of design engineering organizations. The statistical results and the model were externally validated in several organizations for their pragmatic usefulness. The proposed methodology is applicable to those service industries where there are high degrees of output variability and highly skilled professionals working to achieve complex objectives.

Acknowledgements

This research was sponsored in part by a grant from the Construction Industry Institute to Project Team 192 (Engineering Productivity Measurements II). The authors thank all the wonderful industry team members that gave an enormous amount of their time and with considerable effort. We cannot thank them enough for their efforts. A special thanks to Kent Goddard of Solutia Industries for his leadership in directing the project.

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