Benchmarking & Metrics Committee Committee Presentation What the Data Tell Us I am here today to introduce you to some recent additions to the CII benchmarking program. What is remarkable about these developments is their move toward the use of “absolute” measurements compared with “relative” measurements. I will be explaining the difference. These absolute metrics are often more easily understood and more meaningful by being closely tied to specific work or a specific type of project. We have witnessed an increase in the participation in the CII benchmarking program which can be attributed to these additions. Before I address these new additions, it is helpful to understand the foundation and history of the CII benchmarking program. Benchmarking & Metrics Committee CII Annual Conference Orlando, Florida July 31 – August 1, 2007

Committee Roster Name Company Gibson, James B. (Jim) - CoCh Alstom Power Inc. Helland, Harold L. - CoCh Abbott Allmen, Carol General Motors Corporation Butts, Tom CH2M HILL Caggiano, John J. (Joe) U.S. Army Corps of Engineers Chapman, Robert E. (Bob) National Institute of Standards & Tech. Davis, Shari Mustang Engineering, L.P. Dove, Ralph Gokey, Mark E. Bechtel Corporation Green, Charles M. (Charlie) Aramco Services Company Herrington, Robert A. (Bob) Jacobs Hile, David G. (Dave) Black & Veatch Kass, Howard National Aeronautics & Space Admin. Neale, David Fluor Corporation Nielsen, Michael J. (Mike) Merck & Co., Inc. Orellana, Roberto H. The Procter & Gamble Company Perkins, David M. Rohm and Haas Company Pitcher, Jonathan D. (Jon) Eli Lilly and Company Schilhab, Richard B. (Brad) CB&I Scott, Danny BE&K Engineering Company Slaughter, James S&B Engineers and Constructors, Ltd. Warnock, Stephen D. (Steve) Washington Group International Inc. Woldy, Paul N. Chevron Corporation

CII Database 12 Years in the Making! 292 (19%) 1,270 (81%) Domestic International 686 (44%) 876 (56%) Owners Contractors 1,562 projects Worth > $72 Billion

CII Database 69 146 1287 56 26 54 2 1 14 9 3 A S I A PACIFIC OCEAN 80 70 60 50 40 30 20 10 EQUATOR TROPIC OF CANCER TROPIC OF CAPRICORN TROP OF CAPRICORN AUSTRALIA A S I A A F R I C A E U R O P E GREENLAND NORTH AMERICA ANTARCTICA SOUTH P A C I F I C O C E A N I N D I A N PACIFIC OCEAN A T L A N T I C 56 69 26 1 3 9 1287 146 14 54 2

CII Database

Focus of Recent Years Metrics Development Productivity Measurement Industry Specific Metrics Performance & Practice Use Metrics Systems Development Online Data Collection & Reporting Electronic Data Entry (XML) Company Level Rollup Reports

2007 Focus – Analysis/Follow-up What the Data Tell Us Productivity Metrics Analysis Pharma Metrics Analysis Value of Best Practices Analysis Continue Systems Development Electronic Data Entry (XML) Downloadable Data Sheets for Company Use Company Level Rollup Reports Internal & External Comparisons Continue Industry Specific Team Development Pharma Oil & Gas Other?

Pharma Benchmarking Teams Owner Team Abbott Amgen Biogen Idec Bristol-Myers Squibb Eli Lilly and Company Genentech GlaxoSmithKline Johnson & Johnson Merck Wyeth-Ayerst Laboratories Analysis & Team Development

Pharma Metrics Analysis What Distinguishes 1Q Performers? What is Project Success? How to Summarize All of This Data and Make It Useful For Management? Analysis

Industry Specific Metrics for Oil & Gas (Downstream) Complete first round of data collection and validation Perform data review with team Define & develop reports Assess and renew Increase participation Current Team Aramco Chevron CITGO Marathon Oil Shell Oil Petrobras Collect/Validate Data & Team Development

Deliver on Existing & Pending Contracts COAA – Benchmarking Oil Sands Projects NIST Study on Productivity, Technology & Practice Use Collect/Validate Data & Analysis

Value of Best Practices Study Joint Committee Team Benchmarking & Metrics Committee Implementation Strategy Committee Knowledge Management Committee Kim Allen – CII Carol Allmen – General Motors Tom Butts – CH2M Hill Eskil Carlsson – CSA Group Paul Chinowsky – University of Colorado Shari Davis – Mustang Enginering Jim Gibson – Alstom Power Inc Charles Green – Aramco Services Company Harold Helland – Abbott Bob Herrington – Jacobs Jay Hoover – NASA Bill Kelly – University of Texas Sang-Hoon Lee – University of Houston Bill Mogan – Harper Industries Mike Nielsen – Merck Jon Pitcher – Eli Lilly Danny Scott – BE&K Engineering Paul Woldy – Chevron

Value of Best Practices Study List of Best Practices Change Management Front End Planning Constructability Zero Accident Tech Benchmarking & Metrics Alignment During PPP Planning for Start-up Team Building Partnering Disputes Resolution & Prevention Project Delivery & Contract Strategy Project Risk Assessment Collect/Validate Data & Analysis

Productivity Metrics Analysis What the Data Tell Us Quantity Based Engineering Productivity Measurement Works: The Relationships Are Strong! Engineering Productivity is Significantly Influenced by Design Quantity: Trend Drivers are Being Identified. Project characteristics such as project type, contract type, project size and main driver significantly impact engineering productivity. Analysis

Productivity Metrics Analysis What the Data Tell Us Implementation of 2D and 3D design platforms have a substantial impact on engineering productivity (surprising findings). Project location affects both engineering and construction productivity Construction and engineering productivity is impacted by the amount of overlap between the two phases. Analysis

2007 Focus – Analysis What the Data Tell Us Productivity Metrics Analysis Pharma Metrics Analysis Value of Best Practices Systems Development Electronic Data Entry (XML) Downloadable Data Sheets for Company Use Company Level Rollup Reports Internal & External Comparisons Team Development of Specific Metrics Programs Pharma Oil & Gas Other?