CIFE welcome

CIFE Overview 100% funded by industry 1988-2000 2000-2010 2010+ Building owners Design and construction companies Software and hardware vendors 1988-2000 Building Information Modeling (BIM) 2000-2010 Virtual Design and Construction (VDC) – project focus 2010+ Optimize Facility Performance Enterprise focus 2

Current success stories: Reports from 2012 CIFE Summer Program Designers/engineers: 30% reduction in project schedule (GPLA) 33% cost reduction (Sera) 328x increase in number of design versions (Arup) 99.99% reduction in design cycle time (Beck) Design-Builders: 48% reduction in man hours (Beck) 30% reduction in cost (NCC) >99% reduction in design batch size (GT) 85% reduction in effort to track supply chains (Optima)  Builders: 95% reduction in field rework (DPR) 20% improvement in field productivity (DPR) 0% reduction in scope (DPR)

CIFE Current success Evidence-based management: metrics on organization and process performance Multidisciplinary design optimization (MDO): Automated rapid generation of (thousands of) design alternatives “Big data” Professional VDC Certificate Program

Plus-Delta of Civil and Environmental Engineering US Department of Commerce, compiled by P. Teicholz Persson, Sustainable City of Tomorrow: B01—Experiences of a Swedish Housing exposition Guilllermo Gomez, PUChile http://www.ndtv.com/photos/health/health-risks-from-air-pollution-8143/slide/7 Provides fixed physical assets and wealth of society High global demand for infrastructure and housing Opportunity to impact global climate challenge significantly Low productivity  compete with other ways to spend $ High energy use and rising energy costs Structural reliability << societal need (Chile) Environmental degradation

The CIFE mission to be the world's premier academic research center for Virtual Design and Construction of Architecture - Engineering - Construction (AEC) industry projects. Virtual Design and Construction (VDC) is the use of multi-disciplinary performance models of design-construction projects, including the Product (i.e., facilities), Organization of the design - construction - operation team and Work Processes in order to support business objectives … … to support exceptionally reliable engineering and management processes to plan, design, construct and operate sustainable facilities

The CIFE mission to be the world's premier academic research center for Virtual Design and Construction of Architecture - Engineering - Construction (AEC) industry projects. Virtual Design and Construction (VDC) is the use of multi-disciplinary performance models of design-construction projects, including the Product (i.e., facilities), Organization of the design - construction - operation team and Work Processes in order to support business objectives … … to support exceptionally reliable engineering and management processes to plan, design, construct and operate sustainable facilities …is there something better to do to meet these goals?

CIFE methods Entirely industry-funded Needs to simultaneously serve diverse constituents: (Industrial) sponsors (Academic) stakeholders: dean, faculty Students CIFE has a 25 year history Practice Research Education

Summary of CIFE role CIFE translational research gives practitioners the opportunity to identify, explore, develop and apply new methods that have great potential value … with low risk and (relatively) low cost Practice Research Education

VDC elements Slide by Martin Fischer

VDC has a management focus Design of Product: classic focus of engineering design and analysis First object-oriented CAD models at Stanford Organization: Necessary because of complexity Process and production management Necessary because projects live over time Emerged from discipline of CEM, started at Stanford

Management objectives and metrics Coordination latency (days) What they are: metrics, target and measured values, status (R/G/Y) . Latency of different teams

Management objectives and metrics Management maturity definition What they are: metrics, target and measured values, status (R/G/Y) So what: Bloom et al. Performance tracks management

(Multiple) Predictable performance objectives: Drivers Production management: short intervals (Multiple) Predictable performance objectives: Drivers Outcomes: major milestones Controllable Process [Conformance to plans] Outcome [Project/ Enterprise Performance] Product, organization, process designs Latency: mean <= 1; 95% within 2 working days Safety: 0 lost hours Coordination activity: planned, explicit, public, informed > 90% Field-generated Requests for Information: 0 Schedule: 1 y Design < .5 y Construct 95% on-time performance Facility managed Scope: 100% of items with > 2% of value, time, cost or energy Rework volume: 0 (for field construction work); objective = 10-20% (virtual work) Cost: >= 95% of budgeted items within 2% of budgeted cost Prediction basis: > 80% of predictions founded *Function (quality) conformance (%): >= 99% Quality - Delivered Scope: 100% satisfaction by POE Design versions: 2 or more >= 80% Schedule conformance (%): >= 80% *Sustainability: >75% better energy, water, materials, than 2002, profitably Staff trained in VDC: >= 4/project Cost conformance (%): >= 95% Globalization: >= 50% of supply and sales

Performance objectives for DPR - 2018 Production management [Conformance to plans] Outcome [Enterprise Performance] Latency: mean <= 1; 95% within 2 working days Safety: 0 lost hours Field-generated Requests for Information: 0 Schedule: 1 y Design < .5 y Construct 95% on-time performance Rework volume: 0 (for field construction work); objective = 10-20% (virtual work) Cost: >= 95% of budgeted items within 2% of budgeted cost *Function (quality) conformance (%): >= 99% Quality - Delivered Scope: 100% satisfaction by POE Schedule conformance (%): >= 80% *Sustainability: >75% better energy, water, materials, than 2002, profitably Cost conformance (%): >= 95% Globalization: >= 50% of supply and sales Staff trained in VDC: > 90% of all projects have >= 4 VDC specialists Other: Drivers Courtesy: DPR

External objectives to clients Broad, disciplined adoption - field: Breakthrough performance objectives for 2015 Internal objectives External objectives to clients

4D+: 4D with analytics Enables: Multi-disciplinary teams to visualize construction of large (or small) projects and View multi-disciplinary predictions of value and costs Over time

Current success story: Multi-disciplinary design Optimization for AEC Flager: MDO Current success story: Multi-disciplinary design Optimization for AEC

Cloud-based multi-disciplinary design optimization Basbagill, Flager: MDO Cloud-based multi-disciplinary design optimization

Morkos: Space Constraint MDO Method Current success story: Schedule by exploring many “or” schedule options SCM schedule durations average 47% shorter than LOB

VDC Certificate Program Big ideas: The VDC certificate program is the single most effective CIFE initiative in helping member organizations to get high value from adoption of VDC methods. It provides professional education to enable participants to: Understand basic theory and practice of VDC; Develop awareness of trends, potential results and issues in using VDC; Develop specific skills in collaborative use of VDC methods. Photo courtesy DPR

Good practice uses multiple VDC methods: DPR Process Metrics Target Costing Stuart Project Setup Need to go further than just the conceptual definition of an “integrated process” Need tangible references of a completely redefined process Prequalification process Define project organization Define deliverables by discipline Process to create a virtual organization Commitment from all parties to virtual organization Recognition that SD, DD, CD and CA are redefined Owner’s commitment from the very top Design Assist Process Virtual Building Tools Design the “Big Room” Virtual Company Big Room Collaborative Planning

Total Economic Impact Model - GC Assume: Constant revenues Lower contract costs Higher internal costs: 1 FTE Predicted (Higher) profit << 2-year payback (c) 2013

<< 2-year payback Owner investment Better than GC, Sub << 2-year payback (c) 2013

The CIFE mission to be the world's premier academic research center for Virtual Design and Construction of Architecture - Engineering - Construction (AEC) industry projects. Virtual Design and Construction (VDC) is the use of multi-disciplinary performance models of design-construction projects, including the Product (i.e., facilities), Organization of the design - construction - operation team and Work Processes in order to support business objectives … … to support exceptionally reliable engineering and management processes to plan, design, construct and operate sustainable facilities

The CIFE mission to be the world's premier academic research center for Virtual Design and Construction of Architecture - Engineering - Construction (AEC) industry projects. Virtual Design and Construction (VDC) is the use of multi-disciplinary performance models of design-construction projects, including the Product (i.e., facilities), Organization of the design - construction - operation team and Work Processes in order to support business objectives … … to support exceptionally reliable engineering and management processes to plan, design, construct and operate sustainable facilities …is there something better to do to meet these goals?