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Benchmarking the Engineering & Construction Industry. 32 nd National Energy & Environmental Conference September 19, 2005. Benchmarking Defined. - PowerPoint PPT Presentation
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32nd National Energy & Environmental Conference
September 19, 2005
Benchmarking the Engineering & Construction
Industry
Benchmarking the Engineering & Construction
Industry
Benchmarking DefinedBenchmarking Defined
Benchmarking is the systematic process of measuring one’s performance against recognized leaders for the purpose of determining best practices that lead to superior performance when adapted and utilized.
- CII, 1995
Determine What to Benchmark(Critical Success Factors)
Define the Metrics
Develop Data CollectionMethodology
Collect Data
Identify Performance &Practice Use Gaps
Identify Reasons for Deficiencies(Root Cause for Gaps)
Develop Action Plan(Select Practices to Narrow Gaps)
Integrate Best Practices intoProject Delivery Processes
Institutionalize as Part ofContinuous Improvement Program
Benchmarking RoadmapBenchmarking Roadmap
Adapted from Robert C. Camp
Essential Elements of Benchmarking
Essential Elements of Benchmarking
• Process (structured/systematic)
• Best practice oriented
• Part of a continuous improvement process
• Understanding what is important to your organization (critical success factors)
• Measurement, comparison, gap analysis against leaders
• Adapting practices to your organization
MetricMetric
A quantifiable, simple, and understandable measure that can be used to compare and improve performance.
Attributes of a Good Metric
Attributes of a Good Metric
• Quantifiable – objectively or subjectively• Simple, unambiguous, and understandable• Reliable and consistent• Verifiable• Timely• Cost-effective• Meaningful to users• Drives the appropriate action
NYSOT 2003 and AFSC 1990
Principles of MetricsPrinciples of Metrics
• Provides value to stakeholders• Focused on continuous improvement• Establishes objective targets• Are ones we have the ability to
influence• Should be kept to the critical few
What Metrics are NOTWhat Metrics are NOT
1. Charts – Charts graphically display metrics, but the chart itself is not a metric.
2. Schedules – Schedules can be used to produce metrics, but the schedule itself is not a metric.
3. Goals, Objectives, Strategies, Plans, etc., although these can be measured, they are not metrics, but rather they can be stated in terms of metrics.
4. Snapshots or one-time status measures as displayed in pie charts. Comparisons of status over time can be a metric.
1Adapted from AFSC - 1990
Improve Efficiency Of A Business Unit
Improve Performance Of A Single Project Or A Group Of Projects
Improve Efficiency Of Overall Project System
Improve Selected Performance Metrics (e.g. Productivity)
Benchmarking Levels of Use
Benchmarking Levels of Use
Measuring PerformanceMeasuring Performance
Cost PerformanceCost Performance
Planned vs. Actual?
Total Installed Cost?
TIC/SF?
Soft Cost/Hard Cost?Total Installed CostProcess Equip. Cost?
Schedule PerformanceSchedule Performance
Planned vs. Actual? Days,Weeks?
DurationSF
Procure Forms
5
5
Mobilize
10
3
Layout Exc 1
15
4
Forms Conc 1
30
3
Set BasePlate1
35
1
Layout Exc 2
20
4
Forms Conc 2
40
3
Set Base Plate 2
50
1
Layout Exc 3
25
4
Forms Conc 3
45
3
Set Base Plate 3
55
1
SS0
SS2
FS2
FS2
SS2
FS2
Procure Forms
5
5
Procure Forms
5
5
Mobilize
10
3
Mobilize
10
3
Layout Exc 1
15
4
Layout Exc 1
15
4
Forms Conc 1
30
3
Forms Conc 1
30
3
Set BasePlate1
35
1
Set BasePlate1
35
1
Layout Exc 2
20
4
Layout Exc 2
20
4
Forms Conc 2
40
3
Forms Conc 2
40
3
Set Base Plate 2
50
1
Set Base Plate 2
50
1
Layout Exc 3
25
4
Layout Exc 3
25
4
Forms Conc 3
45
3
Forms Conc 3
45
3
Set Base Plate 3
55
1
Set Base Plate 3
55
1
SS0
SS2
FS2
FS2
SS2
FS2
?Phase DurationTotal Duration ?
Safety PerformanceSafety Performance
TRIR?Total Recordables?
DART Rate?
EMR?Fatality Rate?
Change PerformanceChange Performance
Scope Changes?
Development Changes?
Cost Impacts?
Schedule Impacts?
Cost of ChangesTotal Installed Cost?
Rework PerformanceRework Performance
Dollar Cost?Rework Cost
Construction Cost?
Schedule Impact?
Productivity Impact?
Productivity PerformanceProductivity Performance
Cy/Hr? Tons/Hr?
Directs vs. Indirects?
Engineering orConstruction?
Measuring Practice Use
Measuring Practice Use
Best Practice UseBest Practice Use• Pre-Project Planning
• Constructability
• Change Management
• Team Building
• Zero Accident Techniques
• Planning for Startup
• Materials Management
• Automation/Integration Tech
• Quality Management
• Alignment
• Risk Assessment
• Design for Maintainability
Quantitative or
Qualitative?
Formats for ComparisonFormats for Comparison
Formats for Comparison
Individual Projects – Performance
Formats for Comparison
Individual Projects – Performance
Formats for Comparison
Individual Projects – Performance
Formats for Comparison
Individual Projects – Performance
Formats for Comparison
Individual Projects – Practice Use
Formats for Comparison
Individual Projects – Practice Use
ContractorDomesticLarge Projects
Formats for Comparison
Data Mining
Formats for Comparison
Data Mining
Legend
1st Quartile2nd Quartile3rd Quartile4th QuartileMean
Legend
1st Quartile2nd Quartile3rd Quartile4th QuartileMean
Quantifying Value of Best Practices
Quantifying Value of Best Practices
Quantifying Value of Best Practices
Quantifying Value of Best Practices
Pe
rfo
rma
nc
e M
etr
ic(S
cale
Met
ric
Dep
end
ent)
Better
BetterPractice Use Metric
0 1 2 3 4 5 6 7 8 9 10
What is the relationship?
Is it significant?
How good is the fit?
How to analyze the relationship?How to analyze the relationship?
Pe
rfo
rma
nc
e M
etr
ic(S
cale
Met
ric
Dep
end
ent)
Better
Practice Use Metric0 1 2 3 4 5 6 7 8 9 10
Better
Pe
rfo
rma
nc
e M
etr
ic(S
cale
Met
ric
Dep
end
ent)
Better
Practice Use Metric0 1 2 3 4 5 6 7 8 9 10
Low Use
High Use
How to analyze the relationship?How to analyze the relationship?
Better
Value of Best Practices
Theoretical Relationship
Value of Best Practices
Theoretical Relationship
High
0.4
0.3
0.2
0.1
0
-0.1
-0.24th Quartile 2nd Quartile 1st Quartile
Practice Use
Perf
orm
an
ce
BetterBetter
3rd Quartile
Low
Improvement PotentialImprovement PotentialP
erf
orm
an
ce
Me
tric
(Sca
le M
etri
c D
epen
den
t)Better
Better
Practice Use Metric0 1 2 3 4 5 6 7 8 9 10
Low Use
High Use
AveragePerformanceImprovement
Accessing the Online System
Accessing the Online System
Project CentralProject Central
Project CentralProject Central
CII Benchmarking Database
A Total Of 1420 Projects of which 194 are Small;10 Years in Development!
CII Benchmarking Database
A Total Of 1420 Projects of which 194 are Small;10 Years in Development!
177
616
531
960
50100150200250300350400450500550600650
Domestic International
Project Location
Nu
mb
er
of
Pro
ject
s
Owner
Contractor
Current CII Benchmarking Systems
Available
Current CII Benchmarking Systems
Available
• Large Project
• Small Project
• Pharmaceutical
• Productivity
Small or Large?
Large or Small Projects?
Large or Small Projects?
• TIC $100K-$5M
• Duration ≤ 14 mo.
• Site Wk-Hrs ≤ 100K
• Full-time PM resources not required
Small ProjectQuestionnaire
• TIC $5M
• Duration 14 mo.
• Site Wk-Hrs 100K
• Full-time PM resources required
Large ProjectQuestionnaire
SummarySummary• Best Practices can improve
performance.
• Benchmarking helps you to:– quantify performance and practice use.
– establish improvement goals.
– achieve “best in class performance.”
AvailabilityAvailability
• Free to member companies.
• $7500 for non-member access*
*Limit of 10 projects per year
Questions?
Questions?
BackupsBackups
Cost GrowthActual Total Project Cost - Initial Predicted Project Cost
Initial Predicted Project Cost
Cost Performance Metrics
Cost Performance Metrics
Delta Cost Growth
| Cost Growth |
Budget FactorActual Total Project Cost
Initial Predicted Project Cost + Approved Changes
Delta Budget Factor
| 1- Budget Factor |
Phase Cost Growth
Actual Phase Cost - Initial Predicted Phase Cost
Initial Predicted Phase Cost
Phase Cost Factor
Actual Phase Cost
Actual Total Project Cost
Schedule Performance Metrics
Schedule Performance Metrics
Schedule Growth
Actual Total Proj Duration - Initial Predicted Proj Duration
Initial Predicted Proj Duration
Delta Schedule Growth
| Schedule Growth |
Schedule FactorActual Total Proj Duration
Initial Predicted Proj Duration + Approved Changes
Delta Schedule Factor
| 1- Schedule Factor |
Phase Schedule Growth
Actual Phase Duration - Initial Predicted Phase Duration
Initial Predicted Phase Duration
Phase Schedule Factor
Actual Phase Duration
Actual Total Proj Duration
Safety Performance Metrics
Safety Performance Metrics
TRIR Total Number of Recordable Cases x 200,000 Total Site Work-Hours
DARTTotal Number of DART Cases x 200,000
Total Site Work-Hours
Change Performance Metric
Change Performance Metric
Change Cost Factor
Total Cost of Changes
Actual Total Project Cost
Rework Performance Metric
Rework Performance Metric
Total Field Rework Factor
Total Direct Cost of Field Rework Actual Construction Phase Cost
Productivity MetricsProductivity Metrics
Construction Productivity Engineering Productivity
• Concrete• Structural Steel• Piping• Instrumentation• Equipment• Electrical• Insulation
• Concrete• Structural Steel• Piping• Instrumentation• Equipment• Electrical
Examples
Work-hours / Qty Installed Design-hours / IFC Quantity