Use of a production function to estimate the impact of work fragmentation on labor productivity

Labor makes up the largest variable cost in building construction and numerous other industrial applications. Fragmentation of labor operations, frequent starts and stops, ramping up and ramping down of a workforce is recognized as having a negative impact on labor productivity. Several methods have been developed to estimate the impact of work fragmentation, however these methods generally do not work well in projects were severe systemic fragmentation occurs. This paper propose a theoretical method based on a production function model and test this model using data from a highly fragmented office building project. The analyses found that the use of a production function can provide evidence of the impact to labor productivity resulting from work fragmentation; however some statistical methods still appear to provide a more accurate estimate of the actual impact to labor productivity and its cost.