CPI Conference 2001

Executing Small Projects Research Team

Executing Small Projects Research Team

Gareth Williams

Bechtel

Gareth Williams

Bechtel

ExecutingSmall Capital Projects

ExecutingSmall Capital Projects

Gary Williams

Bechtel

Gary Williams

Bechtel

ExecutingSmall Capital Projects

ExecutingSmall Capital Projects

CPI Conference 2001

The CircumstancesThe 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!

Let’s Break Out of

Our Old Ways of

Thinking!

Executing Small Projects Research Team

Gertraud Breitkopf General Services Administration, Chair

Coy Campbell Kværner

Terry D’Souza 3M

Jon Dutcher Abbott Labs

Eric Johnson Solutia

Tony Kanaly BMW Constructors

Matthew Nissen Watkins Engineers & Constructors

Gary Smith North Dakota State

Jim Staudt Rohm & Haas

Gareth Williams Bechtel

Gertraud Breitkopf General Services Administration, Chair

Coy Campbell Kværner

Terry D’Souza 3M

Jon Dutcher Abbott Labs

Eric Johnson Solutia

Tony Kanaly BMW Constructors

Matthew Nissen Watkins Engineers & Constructors

Gary Smith North Dakota State

Jim Staudt Rohm & 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 BoardResults Across the Board

• Interviewees had experience with 30-150 projects per year

• Inconsistent data

• Inconsistent organizational structures

• Inconsistent work processes

• Interviewees had experience with 30-150 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

Average Budget Performance

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

Per

cent

Ove

r Budget

Better Budget Performers

Poorer Budget Performers

Delta is 6.4%

2525

Small Cap Annual Budget

($ Million)

Small Cap Annual Budget

($ Million)

00

Various Size ProjectsVarious Size Projects

Four Percent Improvement Equals

$1 Million$1 MillionFree Project!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 Project ProcessesProcesses

CII Knowledge Structure

Best Practices – People

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

NoCore Team

Core Team

Percent of Small Project DeliveredOn Schedule

Savings!

Savings!

Best Practices – Organization

Organizations with Alliances

Engineering AlliancesEngineering Alliances

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Large Projects

Small Projects

Constructor AlliancesConstructor 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 AllianceNo Alliance AllianceAlliance

2.1% Improvement

Pro

ject

Cost

Gro

wth

Pro

ject

Cost

Gro

wth

Budget Performance of Teams with and without

Alliances

Savings!

Savings!

Best Practices – Work Processes

Small Project Organizations with Front-End Planning Checklists

0

10

20

30

40

50

60

70

80

BetterBetter PoorerPoorer BetterBetter PoorerPoorer

Perc

en

t U

sin

g C

hecklists

Perc

en

t U

sin

g C

hecklists

Budget PerformerBudget PerformerSchedule PerformerSchedule PerformerSavings!

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!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!

Come to the Implementation Session

and See More!

Implementation SessionImplementation 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

2001: A Construction Odyssey

Trends and Perspectives