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…
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