On the Relationship between Productivity and Labor Cost of Multi-national Workers in Overseas Construction Projects

Abstract

Oil refinery and chemical plants are constructed by multi-national workers in developing contries. Productivity is defined as a function of actual man-hours and standard man-hours required to complete a job. The author will present equations showing the relationship between labor productivity of multi-national workers and labor cost on the construction site by using seven factors, ie, α: Work volume ratio by each nationality, β: average productivity, γγ: unit man-hour cost ratio, δ: performance factor of main nationality on the site, ζ: man-hour ratio, π: combined productivity, and λ: labor cost index such as [numerical formula] or [numerical formula] [numerical formula] or [numerical formula] and [numerical formula] or [numerical formula] When improving productivity by training, improvement of combined productivity and cost reduction are computed by these equations.