Benchmarking in the Benchmarking in the Information Technology Information Technology

AgeAge

Dave HileDave Hile

Cherne Contracting CorporationCherne Contracting Corporation

CII Benchmarking & Metrics CommitteeCII Benchmarking & Metrics Committee

2000 CII Annual Conference2000 CII Annual ConferenceNashville, TennesseeNashville, Tennessee

BM&M CommitteeBM&M Committee

O’Neal, Richard R. Co-Chair The Procter & Gamble CompanyHile, David G. Co-Chair Cherne Contracting CorporationBeer, Karen B. E. I. duPont de Nemours & Co., Inc.Chapman, Robert E. National Inst. of Standards & Tech. (NIST)Green, Charles M. Aramco Services CompanyGretzinger, Carl General Motors CorporationIsaac, E. Dean Parsons Energy & Chemicals GroupKass, Howard NASALayne, Leonard R. Rust Constructors Inc.Norko, Wladimir U.S. Army Corps of EngineersOgletree, Robert BE&K EngineeringOtt, Richard F. Anheuser-Busch Companies, Inc.Rosas, George R. Celanese Sachs, Jerel F. Kellogg Brown & RootSewell, John Watkins Engineers & ConstructorsSlaughter, James G. S&B Engineers and Constructors Ltd.Tato, John U.S. Department of StateTaylor, Paul E. CITGO Petroleum CorporationMills, Michael A. Brown & Root Energy Services - UKTaylor, Stephen J. National Power Plc. - UKEx-OfficioThomas, Steve Construction Industry Institute (CII)Williams, Ivor European Construction Institute (ECI)

NAME COMPANY

““Benchmarking is the practice of Benchmarking is the practice of

being humble enough to admit that being humble enough to admit that

someone else is better at someone else is better at

something and wise enough to try something and wise enough to try

and learn how to match and even and learn how to match and even

surpass them at it.”surpass them at it.”

““Benchmarking is the practice of Benchmarking is the practice of

being humble enough to admit that being humble enough to admit that

someone else is better at someone else is better at

something and wise enough to try something and wise enough to try

and learn how to match and even and learn how to match and even

surpass them at it.”surpass them at it.”

APQC, 1998APQC, 1998

19991999 ——We listened, we focused, We listened, we focused, and we created the Vision.and we created the Vision.

20002000 ——We are developing, we are We are developing, we are improving, we are delivering improving, we are delivering against the Vision.against the Vision.

20012001 ——We will have the most We will have the most efficient, cost-effective, efficient, cost-effective, credible, and open credible, and open benchmarking system benchmarking system available.available.

19991999 ——We listened, we focused, We listened, we focused, and we created the Vision.and we created the Vision.

20002000 ——We are developing, we are We are developing, we are improving, we are delivering improving, we are delivering against the Vision.against the Vision.

20012001 ——We will have the most We will have the most efficient, cost-effective, efficient, cost-effective, credible, and open credible, and open benchmarking system benchmarking system available.available.

CII BM&M Program

DomesticDomestic675675

DomesticDomestic675675

InternationalInternational226226

InternationalInternational226226

More than More than 900 projects900 projects

Worth Worth approximatapproximately $50Bely $50B

More than More than 900 projects900 projects

Worth Worth approximatapproximately $50Bely $50B

CII BM&M DatabaseCII BM&M Database

Development & fielding of Web questionnaire

Development & fielding of Web questionnaire

BM&M Program BM&M Program ImprovementsImprovements

Web QuestionnaireWeb QuestionnaireWeb QuestionnaireWeb QuestionnaireEnter project data:

online

during project execution

with less effort

with greater accuracy

Enter project data:

online

during project execution

with less effort

with greater accuracy

Web QuestionnaireWeb Questionnaire

New practicesNew practices

– Materials Materials ManagementManagement

– Planning for Planning for StartupStartup

Content Content Improvements:Improvements:Online scoring of PDRIOnline scoring of PDRI

– Disputes Disputes ResolutionResolution

– Design Design EffectivenessEffectiveness

Better

Custom Key ReportsCustom Key Reports New custom Key Reports with project New custom Key Reports with project

results plotted on database chartsresults plotted on database charts

Web Key ReportsWeb Key Reports Web-based Key Reports for real-time Web-based Key Reports for real-time

scoring of performance and practice scoring of performance and practice use metricsuse metrics

Electronic Data ReportElectronic Data Report

User-User-friendly friendly interactive interactive electronic electronic data report data report that that produces produces charts and charts and data tables data tables on demandon demand

Better

Electronic Data Report

Built-in Built-in graphics graphics engine engine produceproduces charts s charts and and tables tables from from data file.data file.

Trend Reporting Trend analysis charts for Trend analysis charts for

performance and practice useperformance and practice use

Pre-Project Planning Use

0

1

2

3

4

5

6

7

1993 1994 1995 1996 1997 1998

Pra

ctic

e U

se In

dex

Pre-Project Planning Use

0

1

2

3

4

5

6

7

1993 1994 1995 1996 1997 1998

Pra

ctic

e U

se In

dex

•Pre-Project Planning

•Constructability

•Change Mgmt.

•Design/Info Tech

•Team Building

•Safety (Zero Accidents)

•Project Complexity

Project Cost Growth = 0.2334

- 0.0083 * Pre-Project Planning

- 0.0040 * Constructability

- 0.0020 * Change Mgmt.

- 0.0081 * Design/Info Tech

- 0.0070 * Team Building Practice

- 0.0131 * Safety Practice

+ 0.0115 * Project Complexity

Value of Best PracticesValue of Best Practices Improved value of best practice analysisImproved value of best practice analysis

Pre-Project Pre-Project PlanningPlanning

$331K$331K

ConstructabilityConstructability$336K$336K

Project Change Project Change ManagementManagement

$441K$441KDesign/InformationDesign/InformationTechnologyTechnology

$366K$366K

SafetySafety$531K$531K

Team BuildingTeam Building$306K$306K

Respondent: Contractors; Industry: Heavy Industrial, $50MM Project

Respondent: Contractors; Industry: Heavy Industrial, $50MM Project

Value of Best Practice Reports

Relative and bottom-line benefits quantified for each industry group

Other Program Other Program ImprovementsImprovements

Built the CII Benchmarking Web Built the CII Benchmarking Web site:site: http://www.cii-benchmarking.org/http://www.cii-benchmarking.org/

Established a path forward for new Established a path forward for new performance/productivity metrics.performance/productivity metrics.

Conducted the first CII Conducted the first CII Benchmarking User’s Forum.Benchmarking User’s Forum.

Established an annual CII Established an annual CII Benchmarking User Award.Benchmarking User Award.

Criteria for award:Criteria for award:

1. Best application of benchmarking for project improvement

2. Contributions to the BM&M program through active participation

1. Best application of benchmarking for project improvement

2. Contributions to the BM&M program through active participation

Benchmarking User Award

Champion International

Champion International

Jacobs Engineering

Jacobs Engineering

Benchmarking User Award

BM&M Implementation Session

BM&M Implementation Session

Panel

Dave Hile Cherne Contracting Moderator

Chad Zollar International Paper (formerly Champion International)

Bob Herrington Jacobs Engineering

Steve Thomas CII

Panel

Dave Hile Cherne Contracting Moderator

Chad Zollar International Paper (formerly Champion International)

Bob Herrington Jacobs Engineering

Steve Thomas CIINCC 204

Why Get Involved?Why Get Involved?Why Get Involved?Why Get Involved?

““If you are not keeping If you are not keeping

score, you’re only score, you’re only

practicing.”practicing.”

““If you are not keeping If you are not keeping

score, you’re only score, you’re only

practicing.”practicing.”

Arthur M. Arthur M. SchneidermanSchneiderman

Journal of Strategic Journal of Strategic Performance Performance MeasurementMeasurement

January 1999January 1999

Arthur M. Arthur M. SchneidermanSchneiderman

Journal of Strategic Journal of Strategic Performance Performance MeasurementMeasurement

January 1999January 1999