Identify and Develop Key Performance Indicators for High-Technological Engineering and Construction Projects - A Case Study of Kockums AB

Abstract: Background: There is an ongoing trend amongst management within engineering and construction business to adopt Key Performance Indicators (KPI). Since this line of business requires timely information in order to take the adequate decisions and actions to ensure that no delays occur. Kockums AB operates within the defence industry with development, design and production of naval vessels. This company is currently developing KPIs in order to enhance the control over its projects. Purpose: The purpose of this paper is to identify critical activities and develop situational key performance indicators in the design phase for advanced high-technological engineering and construction projects. Method: The selected research approach is a qualitative approach, since the complexity of Kockums AB’s productions and processes requires a deeper understanding to identify and develop KPI’s. In this report the collection of information has been obtained by interviews with employees and by accessing internal documents at Kockums AB. Conclusions: Kockums AB is currently developing five KPIs for its operations within the design phase, but there are several critical success factors, which Kockums AB must address before introducing the KPIs to its operations. Furthermore, there is a need to include a base of standard KPIs and complement within situational KPIs. It is also decided that the traditional targets of project quality, budget and time must be extended to include employee satisfaction in order to ensure the sustainability of the competence of the company.