CPI Conference 2001 Executing Small Projects Research Team Gareth Williams Bechtel Gareth Williams Bechtel Executing Small Capital Projects Executing Small Capital Projects

Gary Williams Bechtel Gary Williams Bechtel Executing Small Capital Projects Executing Small Capital Projects CPI Conference 2001

The Circumstances Industries maturing Small capital projects are a larger percentage of most budgets Small project processes less well understood Small project managed instinctively Industries maturing Small capital projects are a larger percentage of most budgets Small project processes less well understood Small project managed instinctively

It Is Time to Rethink Let’s Break Out of Our Old Ways of Thinking!

Executing Small Projects Research Team Gertraud BreitkopfGeneral Services Administration, Chair Coy CampbellKværner Terry D’Souza3M Jon DutcherAbbott Labs Eric JohnsonSolutia Tony KanalyBMW Constructors Matthew NissenWatkins Engineers & Constructors Gary SmithNorth Dakota State Jim StaudtRohm & Haas Gareth Williams Bechtel Gertraud BreitkopfGeneral Services Administration, Chair Coy CampbellKværner Terry D’Souza3M Jon DutcherAbbott Labs Eric JohnsonSolutia Tony KanalyBMW Constructors Matthew NissenWatkins Engineers & Constructors Gary SmithNorth Dakota State Jim StaudtRohm & Haas Gareth Williams Bechtel

What Is A Small Project? Total cost  $100,000 to $2 million Part-time, multi-disciplined team Operating facility environment Short duration Total cost  $100,000 to $2 million Part-time, multi-disciplined team Operating facility environment Short duration

The Approach Focused on practices that are different for small projects. Surveyed 36 diverse organizations that do small projects. Compiled an exhaustive survey of practices and results. Visited and interviewed leaders face to face. Focused on practices that are different for small projects. Surveyed 36 diverse organizations that do small projects. Compiled an exhaustive survey of practices and results. Visited and interviewed leaders face to face.

Results Across the Board Interviewees had experience with projects per year Inconsistent data Inconsistent organizational structures Inconsistent work processes Interviewees had experience with projects per year Inconsistent data Inconsistent organizational structures Inconsistent work processes

The Analysis Documented standard industry practices. Separated organizations into groups. Analyzed differences – practices and performance. Documented standard industry practices. Separated organizations into groups. Analyzed differences – practices and performance.

The Industry Needs Improved body of small project knowledge Clear, documented small project best practices Consistent small project measures More attention paid to small projects Improved body of small project knowledge Clear, documented small project best practices Consistent small project measures More attention paid to small projects

The Small Projects Toolkit

The Differences

25 Small Cap Annual Budget ($ Million) Small Cap Annual Budget ($ Million) 0 0 Various Size Projects Four Percent Improvement Equals $1 Million Free Project!

Other Benefits Higher returns on investment Improved schedule compliance and improved budget compliance Improved customer satisfaction Reduced average project duration Free Projects! Free Projects!

Front-End Planning Design Procurement Construction Start-Up and Operations People Organization Front-End Planning Design Procurement Construction Start-Up and Operations People Organization Project Processes Project Controls Contracting Safety, Health & Environment Technology & Information Global Project Processes Project Controls Contracting Safety, Health & Environment Technology & Information Global PeoplePeople OrganizationOrganization Project ProcessesProject Processes CII Knowledge Structure

Best Practices – People

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% No Core Team Percent of Small Project Delivered On Schedule Savings!

Best Practices – Organization

Organizations with Alliances Engineering Alliances 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Large Projects Small Projects Constructor Alliances 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Large Projects Small Projects

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% No Alliance Alliance 2.1% Improvement Project Cost Growth Budget Performance of Teams with and without Alliances Savings!

Best Practices – Work Processes

Small Project Organizations with Front-End Planning Checklists Better Poorer Better Poorer Percent Using Checklists Budget Performer Schedule Performer Savings!

Best Practices Improved Return on Investment Improved Schedule and Budget Reliability Improved Customer Satisfaction Improved Return on Investment Improved Schedule and Budget Reliability Improved Customer Satisfaction Free Projects!

It is Time to Get out of Our Jar! Let’s re-examine: -Where we put our best people -Where we invest our time -Our practices -Our operations Let’s re-examine: -Where we put our best people -Where we invest our time -Our practices -Our operations

A Few of the Tools in the Toolbox Come to the Implementation Session and See More!

Implementation Session Introduction People -Scenario -Research -Best Practices Front End Planning Organization Conclusion Introduction People -Scenario -Research -Best Practices Front End Planning Organization Conclusion

Construction Project Improvement Conference Construction Industry Institute Austin, Texas 2001: A Construction Odyssey Trends and Perspectives