Benchmarking:The Journey to Improvement

Dave Hile

Watkins Engineers and Constructors

Dave Hile

Watkins Engineers and Constructors

Benchmarking & Metrics Committee

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 When opportunity opportunity

knocks, don’t be knocks, don’t be mild mannered..mild mannered..

When When opportunity opportunity

knocks, don’t be knocks, don’t be mild mannered..mild mannered..

BM&M Committee – Owners

Tato, John U.S. Department of State, Co-Chair

Beer, Karen E. I. duPont de Nemours & Co., Inc.

Chapman, Robert National Inst. of Standards & Tech. (NIST)

Flansburg, Rick Naval Facilities Engineering Command

Green, Charles Aramco Services Company

Gretzinger, Carl General Motors Corporation

Kass, Howard National Aeronautics & Space Admin.

Norko, Walt U.S. Army Corps of Engineers

Stickel, Dave The Procter & Gamble Company

Ott, Rich Anheuser-Busch Companies, Inc.

Rosas, George Celanese Chemicals Americas

Taylor, Paul CITGO Petroleum Corporation

Winninger, Chuck Praxair

BM&M Committee – Contractors

Hile, David Watkins Engineers & Constructors Inc., Co-Chair

Herrington, Robert Jacobs

Loid, Kirby Washington Group International, Inc.

Mills, Michael Brown & Root Energy Services

Speed, Sam Rust Constructors

Ogletree, Robert BE&K Engineering Company

Sachs, Jerel Kellogg Brown & Root

Slaughter, James S&B Engineers and Constructors Ltd.

Ex-Officio

Thomas, Steve Construction Industry Institute

Williams, Ivor European 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 DatabaseThe Database

Domestic764

Domestic764

International231

International231

CII BM&M Database

Approximately 1000 projects

Worth $52 billion

Owner/Contractor Participation

Contractor465

Contractor465

Owner530

Owner530

130

295

63

346

474234 380

50

100

150

200

250

300

350

Buildings Heavy

Industrial

Infrastructure Light

Industrial

Nu

mb

er

of

Pro

jects

Owner

Contractor

Industry Groups

Top 10 Project Types

Count Percent

Chemical Mfgr. 227 22.8

Oil Refining 160 16.1

Electrical (Generating) 66 6.7

Pulp and Paper 60 6.0

Lowrise Office 43 4.3

Metals Refining/Processing 34 3.4

Foods 34 3.4

Oil Exploration/Production 33 3.3

Natural Gas Processing 31 3.1

Water/Wastewater 29 2.9

80

70

60

50

40

30

20

10

EQUATOR

20

30

40

50

60

70

80

30

40

50

60

70

80

20

10 10

30

40

50

60

70

80

80

70

60

50

40

30

20

10

30

TROPIC OF CANCER

40

50

60

70

80 80

70

60

50

40

30

20

10

EQUATOR

TROPIC OF CANCER

TROPIC OF CAPRICORN TROP OF CAPRICORN

10

20

30 30

40 40

50 50

60 60

70 70

80 80 80

70

60

50

40

30

20

10

30

40

50

60

70

80 80

70

60

50

40

30

20

10

AUSTRALIA

A S I A

A F R I C A

E U R O P E

GREENLANDGREENLAND

NORTHAMERICA

ANTARCTICA

SOUTHAMERICA

P A C I F I C

O C E A N

O C E A N

I N D I A NO C E A N

PACIFIC OCEAN

A T L A N T I C

3838

69

26

1

39

768768 129129

1414

4141

22

33

Project Locations

Performance Metrics

•Cost

•Schedule

•Safety

•Changes

•Rework

-0.05

-0.04

-0.03

-0.02

-0.01

0

0.01

1993 1994 1995 1996 1997 1998 1999

Pro

ject

Cost

Gro

wth

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 UseAverage Contractor Heavy Industrial

Project

The Value of Practice UseAverage 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

High Impact

Low Impac

t

Safety BenefitsSafety Practice Use vs. Recordable Incident

Rate

2.0

3.0

4.0

5.0

6.0

7.0

Average Project Cost: $37MMAverage Craft Worhour: 347K

Safety Practice Use

Recordable Incident

Rate

4th Quartile 2nd Quartile3rd Quartile 1st Quartile

1.0

Low High

Respondent: OwnerIndustry Group: Heavy Industrial

2.5522.905

4.106

5.755

Potential for Improvemen

t2.950 3.120

1.0151.385

0.0

MeanMedian

Productivity MetricsProductivity 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 2000 Establish Path Forward

Jul 2000 Identify & Discuss Issues Develop Work Plan & Resource Teams

Sep 2000 Develop Preliminary Construction Metric Definitions

Nov 2000 Review Construction Metric Definitions Develop Engineering Metric Categories

Feb 2001 Finalized Construction Metric Definitions

Jun 2001 Finalized Construction Metric Questionnaire

Jun 2001 Initiated Pilot Data Collection

Jun 2000 Establish Path Forward

Jul 2000 Identify & Discuss Issues Develop Work Plan & Resource Teams

Sep 2000 Develop Preliminary Construction Metric Definitions

Nov 2000 Review Construction Metric Definitions Develop Engineering Metric Categories

Feb 2001 Finalized Construction Metric Definitions

Jun 2001 Finalized Construction Metric Questionnaire

Jun 2001 Initiated Pilot Data Collection

Productivity Metric Categories

• Piping

• Insulation

• Instrumentation

• Equipment

• Electrical & devices

• Structural steel

• Concrete

Pilot Test ResultsPilot Test Results

Benchmarking User Forum

Second Annual Forum – April 5

Participation

Second Annual Forum – April 5

ParticipationHuntsmanJE Merit ConstructorsNaval Facilities Engr

CommandOntario Power GenerationPSEG Energy TechnologiesParsons Energy & Chem

GroupRust ConstructorSMS DemagTexaco Power & GasificationU.S. Department of StateH. B. Zachry Company

HuntsmanJE Merit ConstructorsNaval Facilities Engr

CommandOntario Power GenerationPSEG Energy TechnologiesParsons Energy & Chem

GroupRust ConstructorSMS DemagTexaco Power & GasificationU.S. Department of StateH. B. Zachry Company

ATOFINA ChemicalsAramco ServicesBE&KBethlehem SteelBlack & VeatchBoeing CompanyCDI EngineeringCITGO PetroleumCelaneseDay & Zimmermann Int’lDofascoGeneral Motors

ATOFINA ChemicalsAramco ServicesBE&KBethlehem SteelBlack & VeatchBoeing CompanyCDI EngineeringCITGO PetroleumCelaneseDay & Zimmermann Int’lDofascoGeneral 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 Hile Watkins Engineers & Constructors

Jimmy Slaughter S&B Engineers & Constructors

Bid Submittal

REJECTED

Bid Reject:Bid Reject:I wish I had beenI wish I had beenBenchmarking…Benchmarking…