Increased efficiency of experience feedback between production and budget

Abstract: The construction industry has during many years been regarded as a problematic industry. As a result of this the government 2002 set up a commission with the aim to discourage negative trends in the industry. The commission acknowledged the problem with work activities being reconstructed between projects. As a result of this the experience being acquired in one project did not come to use in the next. In the construction industry it is a well-known fact that around 10% of the cost of production can be categorized as error and controls. The most of the errors that occur can be eliminated with better planning. A tool to be used is experience feedback which purpose is to use the knowledge gained from earlier projects to predict future projects. The purpose of this study is to examine and highlight problems that can occur when experience shall be fed back between production and budget with the aim to present suggested improvements. The study is divided into three questions where the first question investigates which data is relevant from production in order to make well motivated production budgets. The second question explores, in a collaboration with SM Entreprenad AB, which conditions there are today regarding experience feedback between production and budget. The third and final question reviews improvements to be made. The first question is being answered with literature as reference while the second and third has its focus on interviews. The results of the study shows that a budget is constructed with earlier projects as reference where data mainly regarding time, used amount of material as well as used material/equipment are the central variables that need to be fed back to budget. The situation at SM Entreprenad today is that they more or less are not feeding back any data from production with the aim to make well motived budgets. The study shows regarding improvements to be made that there are a lot of data to be used, but they lack routines in order to use this data.