Benchmarking as a Best Practice CII Annual Conference Vancouver, British Columbia

My Objectives Define Benchmarking as a Best Practice Discuss Value of Benchmarking Establish Ease of Use Gain Your Participation

CII Best Practice Validation A defined process and method Steps and activities Comprehensive and overwhelming research study / finding Validation through one of the following Benchmarking & metrics Member acceptance, use, and validation Rigorous post-research validation

Benchmarking Is… Measuring yourself against the best relative to: Performance Metrics Cost Schedule Safety Rework Changes Best Practice Use Productivity Planning and executing your improvement journey to “best in class.”

Part of a Continuous Improvement Journey Implement Best Practices Conduct Training Measure Results Select Implementation Tools Compare to Competition Identify Opportunities to Improve

The Value of Benchmarking Project Cost Growth -10 % -8 % -6 % -4 % -2 % 1993 1994 1995 1996 1997 1998 1999 2000 2001 Project Cost Performance – Owners ~10 % improvement SO WHAT ??? FOR ONE METRIC WHAT ABOUT 7-10% LESS COST GROWTH ON AVERAGE IMPROVING INDIV. PROJECT RETURN ON INVESTM’T WHAT ABOUT 7-10% MORE CASH TO INVEST AT YOUR HURDLE RETURN ON INVESTM’T WHAT ABOUT GAINING THE CONFIDENCE & SUPPORT OF YOUR BOARD BASED ON PERFORMANCE

* OSHA Construction Division, SIC 15-17 Reflects OSHA Reporting Change The Value of Benchmarking Comprehensive research has proven its value. Industry* CII 7.10 14.30 14.20 13.00 12.20 11.80 9.90 9.50 8.80 8.60 8.30 7.90 13.10 10.60 7.19 6.12 5.32 4.31 3.44 3.00 2.66 2.30 1.60 1.59 1.67 1.03 1.02 1.23 1.19 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 325 413 477 497 527 613 644 770 518 765 995 936 1,117 1,073 1,140 Year and Work Hours (MM) Total Recordable Incidence Rate * OSHA Construction Division, SIC 15-17 Reflects OSHA Reporting Change What gets measured… gets improved!

The Value of Benchmarking Improves project & company performance when used as an ongoing measure Establishes improvement goals based on external/competitive benchmarks Enables your company to understand & achieve “best in class” performance

CII Benchmarking Effort-Hours Benchmarking Associate Training 8 hours/year Project Benchmarking Kick-off 2 hours/project (new PM to CII Benchmarking) Data Entry & Validation Batch: ~4 hours/project Continuous: unnoticed effort for data entry <1 hour/project for validation

Thought Break ? Please ask yourself the following …….. Have we planned an effective continuous improvement journey? Are we benchmarking? With CII? ?

CII Benchmarking Participation CII Benchmarking & Metrics participation 1,200+ projects input in 8 years Worth approximately $60 billion Over 70 owners and contractors have participated New / re-energized companies benchmarking: 3M Anvil Corp. BE&K CDI Engineering Group Eli Lilly & Co. Foster Wheeler USA Corp. General Motors Corp. General Services Admin. GlaxoSmithKline Johnson Controls Aker Kvaerner Rohm & Haas WE HAVE GOOD PARTICIPATION BUT NOT TO MY STANDARD. LIKE THE ‘ZERO INCIDENT’ SAFETY PROGRAM, WE SHOULD HAVE ZERO MEMBERS WHO CHOOSE NOT TO BENCHMARK WITH CII. WE ARE VERY PROUD OF OUR LIST OF NEW/RE-ENERGIZED COMPANIES

Benchmarking Is Easy at CII Online Large Project questionnaire New Small Project questionnaire Implementation Toolkit

Implementation Toolkit Online http://cii-benchmarking.org/toolkit/ Assists in the implementation of Benchmarking Training slides Project selection criteria Printable questionnaires Executive and project level presentations demonstrating the value of benchmarking

Presentations Show the Value of Benchmarking

Summary Benchmarking …… best practice value to your bottom line guide to “best in class” performance easy at CII requires your participation What gets Measured Gets Improved !!!!

Benchmarking as a Best Practice Benchmarking Implementation Sessions Benchmarking as a Best Practice Learn how to incorporate benchmarking into your project processes See how member companies are gaining value through benchmarking Review CII’s Benchmarking Toolkit – the implementation resource for CII benchmarking Hear testimonials from companies using CII benchmarking Get an update on the status of CII benchmarking Location: Georgia B Date/Time: Wednesday 4:30 - 5:30 p.m. Session repeated: Thursday 9:15 - 10:15 a.m.

Benchmarking Productivity Benchmarking Implementation Sessions Benchmarking Productivity Report out on CII Productivity Metrics Retreat Status on construction productivity data collection Review CII engineering metric definitions Discuss issues of benchmarking productivity Learn how to get started Location: Georgia A Date/Time: Thursday 3:15 – 4:15 Session repeated: 4:30 – 5:30

Learn More Visit the Conference Display Area Join our implementation sessions Get involved!