Benchmarking: The Journey to Improvement Dave Hile Watkins Engineers and Constructors Dave Hile Watkins Engineers and Constructors Benchmarking & Metrics Committee CPI Conference 2001

Benchmarking: The Journey to Improvement CPI Conference 2001 Dave Hile Watkins Engineers & Constructors Dave Hile Watkins Engineers & Constructors

CII Bureau of Benchmarking & Metrics When opportunity knocks, don’t be mild mannered..

BM&M Committee – Owners Tato, JohnU.S. Department of State, Co-Chair Beer, KarenE. I. duPont de Nemours & Co., Inc. Chapman, RobertNational Inst. of Standards & Tech. (NIST) Flansburg, RickNaval Facilities Engineering Command Green, CharlesAramco Services Company Gretzinger, CarlGeneral Motors Corporation Kass, HowardNational Aeronautics & Space Admin. Norko, WaltU.S. Army Corps of Engineers Stickel, DaveThe Procter & Gamble Company Ott, RichAnheuser-Busch Companies, Inc. Rosas, GeorgeCelanese Chemicals Americas Taylor, PaulCITGO Petroleum Corporation Winninger, ChuckPraxair

BM&M Committee – Contractors Hile, DavidWatkins Engineers & Constructors Inc., Co-Chair Herrington, RobertJacobs Loid, KirbyWashington Group International, Inc. Mills, MichaelBrown & Root Energy Services Speed, SamRust Constructors Ogletree, RobertBE&K Engineering Company Sachs, JerelKellogg Brown & Root Slaughter, JamesS&B Engineers and Constructors Ltd. Ex-Officio Thomas, SteveConstruction Industry Institute Williams, IvorEuropean Construction Institute

Plenary Presentation Background Recent Activities Findings Benchmarking User Awards Implementation Sessions

CII Benchmarking Objectives Establish common metric definitions Establish performance & best practice use norms Determine the value of best practices Provide member companies a basis for self-analysis Support CII Research and Implementation activities through feedback

Participants & Functions Company Benchmarking Associate -Company trained knowledge resource for CII Benchmarking -Facilitates data collection -Validates data submitted Committee -Policy, procedure, & oversight -Industry relevance & perspective Staff -Database management, administration, & security -Analysis & reporting -Coordination

Recent Accomplishments Continued Web development Increased focus on use of tools & data Added new cost, schedule and practice use metrics Expanded focus to include small projects Added more user choices for benchmarking Developed construction productivity metrics Developed Benchmarking Code of Conduct

CII Benchmarking Code of Conduct Purpose: -to guide Committee, staff, and participant activities -to promote CII BM&M acceptance -to enhance the professionalism and overall effectiveness of the program Addresses: -principles of conduct -confidentiality -use of data Purpose: -to guide Committee, staff, and participant activities -to promote CII BM&M acceptance -to enhance the professionalism and overall effectiveness of the program Addresses: -principles of conduct -confidentiality -use of data

The Database

Domestic 764 Domestic 764 International 231 International 231 CII BM&M Database Approximately 1000 projects Worth $52 billion

Owner/Contractor Participation Contractor 465 Contractor 465 Owner 530 Owner 530

BuildingsHeavy Industrial InfrastructureLight Industrial Number of Projects Owner Contractor Industry Groups

Top 10 Project Types Count Percent Chemical Mfgr Oil Refining Electrical (Generating)666.7 Pulp and Paper606.0 Lowrise Office434.3 Metals Refining/Processing343.4 Foods343.4 Oil Exploration/Production333.3 Natural Gas Processing313.1 Water/Wastewater292.9

Project Locations

Performance Metrics Cost Schedule Safety Changes Rework

Project Cost Growth Project Cost Performance – Owners

Practice Use Metrics Pre-Project Planning Constructability Team Building Zero Accidents Change Management Materials Management Quality Management Design Effectiveness Current Practices Surveyed

Practice Use Metric Norms Planning for Start-up Design/Info Technology PDRI – Project Definition Rating Index -Buildings -Industrial Percent Design Complete -at authorization -at construction start Other Practices/Metrics

The Value of Practice Use Average Contractor Heavy Industrial Project Cost Savings Schedule Reduction Team Building Project Change Management Pre-Project Planning Design/Information Technology Constructability Safety Low Impact High Impact Low Impact

Safety Benefits Safety Practice Use vs. Recordable Incident Rate Average Project Cost: $37MM Average Craft Worhour: 347K Safety Practice Use Recordable Incident Rate 4th Quartile2nd Quartile3rd Quartile1st Quartile 1.0 LowHigh Respondent: Owner Industry Group: Heavy Industrial Potential for Improvement Mean Median

Productivity Metrics

Productivity Metrics Participation ABB Lummus Global Anheuser-Busch Aramco Services BE&K Engineering BMW Constructors CDI Engineering Cherne Contracting Conoco Day & Zimmermann Dow Chemical Fluor Daniel J. E. Merit Constructors Jacobs JEMCI, Jacobs Engineering Kvaerner NAVFAC Engineering Command Phillips Petroleum Praxair Rohm and Haas Rust Constructors S&B Texaco Texaco Power & Gasification Watkins Zachry Construction

Productivity Metric Milestones Jun 2000Establish Path Forward Jul 2000Identify & Discuss Issues Develop Work Plan & Resource Teams Sep 2000Develop Preliminary Construction Metric Definitions Nov 2000Review Construction Metric Definitions Develop Engineering Metric Categories Feb 2001Finalized Construction Metric Definitions Jun 2001Finalized Construction Metric Questionnaire Jun 2001Initiated Pilot Data Collection Jun 2000Establish Path Forward Jul 2000Identify & Discuss Issues Develop Work Plan & Resource Teams Sep 2000Develop Preliminary Construction Metric Definitions Nov 2000Review Construction Metric Definitions Develop Engineering Metric Categories Feb 2001Finalized Construction Metric Definitions Jun 2001Finalized Construction Metric Questionnaire Jun 2001Initiated Pilot Data Collection

Productivity Metric Categories Piping Insulation Instrumentation Equipment Electrical & devices Structural steel Concrete

Pilot Test Results

Benchmarking User Forum Second Annual Forum – April 5 Participation Second Annual Forum – April 5 Participation Huntsman JE Merit Constructors Naval Facilities Engr Command Ontario Power Generation PSEG Energy Technologies Parsons Energy & Chem Group Rust Constructor SMS Demag Texaco Power & Gasification U.S. Department of State H. B. Zachry Company Huntsman JE Merit Constructors Naval Facilities Engr Command Ontario Power Generation PSEG Energy Technologies Parsons Energy & Chem Group Rust Constructor SMS Demag Texaco Power & Gasification U.S. Department of State H. B. Zachry Company ATOFINA Chemicals Aramco Services BE&K Bethlehem Steel Black & Veatch Boeing Company CDI Engineering CITGO Petroleum Celanese Day & Zimmermann Int’l Dofasco General Motors ATOFINA Chemicals Aramco Services BE&K Bethlehem Steel Black & Veatch Boeing Company CDI Engineering CITGO Petroleum Celanese Day & Zimmermann Int’l Dofasco General Motors

Benchmarking User Forum Second Annual Forum – April 5 Participation Structure Owner/Contractor Presentations Breakouts Second Annual Forum – April 5 Participation Structure Owner/Contractor Presentations Breakouts

Benchmarking User Award Owner General Motors Corp. Contractor BE&K, Inc.

Path Forward Update/add new practice use metrics. Increase small projects analysis. Develop more user choices for benchmarking. Add online links to products. Publish productivity metrics norms. Develop engineering productivity metrics.

BM&M Implementation Session Productivity Metrics Dave HileWatkins Engineers & Constructors Jimmy SlaughterS&B Engineers & Constructors

Bid Submittal REJECTED Bid Reject: I wish I had been Benchmarking…