CII and Benchmarking for Construction Industry

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ELET 6100 Seminar
CII and Benchmarking for Construction Industry
Sang-Hoon (Shawn) Lee, Ph.D. College of
Technology University of Houston March 1, 2004
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Construction Industry Institute

• A consortium of leading owners, contractors,
  suppliers, and academia that is interested in
  improving the constructed project and the capital
  investment process.

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CII Owner Members

• Colectric Partners
• ConocoPhillips
• Dofasco
• Dow Chemical
• DuPont
• Eastman Chemical
• ExxonMobil
• GSA
• General Motors
• GlaxoSmithKline
• Intel
• International Paper

• 3M
• Abbott Labs
• Air Products Chemicals
• Allegheny Energy Supply
• Anheuser-Busch
• Aramco Services
• BP America
• Bovis Lend Lease
• CITGO
• Cargill
• Celanese
• ChevronTexaco

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CII Owner Members
Solutia Southern Company Sunoco TVA U.S. Air
Force Research Lab U.S. Army Corps of
Engineers U.S. Dept. of Commerce/NIST U.S. Dept.
of Energy U.S. Dept. of Health Human Serv. U.S.
Dept. of State U.S. Steel Weyerhaeuser Company

• Eli Lilly and Company
• Marathon Oil
• NASA
• NAVFAC
• Ontario Power
• Petrobras
• Pfizer
• Praxair
• Procter Gamble
• Rohm and Haas
• Shell Oil
• Smithsonian Institution

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CII Contractor Members
CH2M HILL CSA Group Chicago Bridge Iron Day
Zimmermann Dick Corporation Dillingham
Construction Holdings Eichleay Engineers
Constructors Emerson Process Management Fluor
Daniel Foster Wheeler USA Graycor Fru-Con
Construction Hatch Associates

• ABB Lummus Global
• ALSTOM Power
• AZCO Inc.
• BEK
• BMW Constructors
• Baker Concrete
• Bechtel Group
• Black Veatch
• Burns McDonnell
• Burns and Roe
• Butler Manufacturing
• CCC Group
• CDI Engineering

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CII Contractor Members
Rust Constructors SB Shaw Group Siemens
Westinghouse Stevens Painton Structural
Group Technip USA Turner Construction Walbridge
Aldinger Washington Group Williams Group Zachry
Construction Zurich North America

• Hilti
• Honeywell International
• Jacobs
• J. A. Jones
• Johnson Controls
• Kellogg Brown Root
• Kiewit Construction
• Kværner
• M. A. Mortenson
• PSEG
• Parsons Energy Chemicals
• Primavera Systems

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Universities Active in CII Research

• Arizona State
• Auburn
• Cal-Berkeley
• Cincinnati
• Clemson
• Colorado-Boulder
• Florida
• Georgia Tech
• Kentucky
• North Dakota State

Oregon State Polytechnic Purdue San Diego
State Stanford Texas Texas AM Virginia
Tech Washington Wisconsin-Madison
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CII Membership Trends
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CII Organization
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CII Core Processes
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Benchmarking Metrics Program

• Objectives
• Establish common definitions.
• Establish metric norms.
• Determine the value of best practices.
• Provide member companies a basis for
  self-analysis.

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Benchmarking Metrics Database
Number of Projects in Database
International 246

• 1112 projects
• Represents gt58 billion.

Domestic 866
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Benchmarking Metrics Database
Contractor 509
Owner 603
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Project Locations
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What do we measure?
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What do we measure?
Practice Use
Performance Metrics
Statistical Analyses
Cost Performance Schedule Performance Safety
Performance Change Performance Rework
Performance Const. Productivity Eng. Productivity
Pre-Project Planning Constructability Project
Change Mgmt. Automation/Integration Tech. Team
Building Safety Practice Planning for
Startup Materials Mgmt. Quality
Mgmt. Alignment Design Effectiveness
Value of Best Practices
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Performance Metrics
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Performance Metrics
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Practice Use Metrics
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Practice Use Metrics
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Value of Best Practices
Practice Use
Performance
Correlations
Value of Practice Use
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Value of Best Practices
Theoretical Relationship
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Value for Cost Performance
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Value for Schedule Performance
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Value for Performance Index
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Cost Savings
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Cost Savings

• 10.9MM Cost of average building
• x 8.5 Cost growth savings
• 926K Expected savings for typical
• project

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Schedule Reductions
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Schedule Reductions

• 28 Month Duration of average building
• x 31.7 Schedule growth savings
• 8 Month Expected savings for typical
• project

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Practice Use Categorization
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Performance Prediction Software
The DFA Program

• User-friendly interface
• For project managers
• For field engineers
• Multiple projects analysis
• Built-in database
• Classification
• Tips for improvement

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Project Cost Performance - Owners
(Project Cost Growth)
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Practice Use - Owners
(Standardized Practice Index)
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The Bottom Line

• Increased use of best practices.
• Better project performance.
• The ability to quantify the savings through the
  CII Benchmarking program.

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Benchmarking Reports

• Data Report
• Key Reports
• Safety Report
• Value of Best Practices
• Summary Report
• Funded Studies

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Benchmarking Thoughts
Measurement is the first step that leads to
control and eventually to improvement.
-
Harrington
If you are not keeping score, youre only
practicing.
- Schneiderman
A thimble of data is worth more than a ocean
of opinion!
- Slaughter
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What gets measured, gets improved!
When you are average, you are just as close to
the bottom as you are the top. - Unknown