Benchmarking the Value of Best Practices

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Benchmarking the Value of Best Practices
CPI Conference September 30, 2002 Austin, Texas
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Session Participants

• Moderator
• John Tato - U.S. Department of State
• Panelists
• Jack Yarbrough Jacobs
• Steve Thomas - CII

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Goals of this Session

• Highlight recent Benchmarking Metrics Program
  improvements
• Present key findings from the program
• Illustrate the value of benchmarking
• Address barriers to benchmarking

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Q Are you currently benchmarking your projects?
Reasons for not benchmarking

• Lack of time and other resources.
• Project management reporting process not
  formally established.

5
Q Do you have a data collection infrastructure
that facilitates the collection of data essential
to an effective benchmarking system?
Reason for No responses

• No in-house system

6
Q Are you satisfied with your benchmarking
program?
Reasons for No responses

• No program has been implemented

• More consistency/standardization needed in
• benchmarking projects

• Benchmarking efforts need to be focused on
  other types of projects

• Data systems should be more flexible/automated

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Our Charter

• Establish common definitions.
• Establish metric norms.
• Determine value of best practices.
• Provide members a basis for self-analysis.
• Support CII research and implementation
  activities through feedback.

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Our Customers

• Member Companies
• Research and Implementation
• Funded Studies
• Alliances
• Benchmarking Participants Program (BMPP)

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Owner Participants
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Contractor Participants
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Most Active 2000-2002
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Benchmarking User Award

• Owner
• Aramco Services Company

• Contractor
• SB Engineers and Constructors Ltd.
• Watkins Engineers Constructors Inc.

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Questionnaire Development
Version 1

• Cost Performance
• Schedule Performance
• Safety Performance
• Change Performance
• Rework Performance

Performance Metrics
Version 1
Best Practices Metrics

• Pre-Project Planning
• Constructability
• Team Building
• Zero Accident Techniques

First version
209 Projects
11.47 Billion
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Questionnaire Development
Version 2

• Cost Performance
• Schedule Performance
• Safety Performance
• Change Performance
• Rework Performance

Performance Metrics
Version 2
Best Practices Metrics

• Pre-Project Planning
• Constructability
• Team Building
• Zero Accident Techniques
• Project Change Mgmt
• Design/Info. Tech.

?
?
Refinements Addition of Two practices
442 Projects (Cumulative)
25.95 Billion (Cumulative)
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Questionnaire Development
Version 3

• Cost Performance
• Schedule Performance
• Safety Performance
• Change Performance
• Rework Performance

Performance Metrics
Version 3
Best Practices Metrics

• Pre-Project Planning
• Constructability
• Team Building
• Zero Accident Techniques
• Project Change Mgmt
• Design/Info. Tech.

?
PDRI For Buildings (part of Pre-Project Planning)
745 Projects (Cumulative)
39.88 Billion (Cumulative)
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Questionnaire Development
Version 4

• Cost Performance
• Schedule Performance
• Safety Performance
• Change Performance
• Rework Performance

Performance Metrics
Version 4
Best Practices Metrics

• Pre-Project Planning
• Constructability
• Team Building
• Zero Accident Techniques
• Project Change Mgmt
• Design/Info. Tech.

?
Electronic/Web Questionnaire
906 Projects (Cumulative)
49.68 Billion (Cumulative)
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Questionnaire Development
Version 5

• Cost Performance
• Schedule Performance
• Safety Performance
• Change Performance
• Rework Performance

Performance Metrics
Version 5
Best Practices Metrics

• Pre-Project Planning
• Constructability
• Team Building
• Zero Accident Techniques
• Project Change Mgmt
• Design/Info. Tech.
• Materials Management
• Planning for Startup

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Entire PDRI - (part of Pre-Project
Planning) Materials Management Planning for
Startup
?
?
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Questionnaire Development
Version 6

• Cost Performance
• Schedule Performance
• Safety Performance
• Change Performance
• Rework Performance
• Construction
• Productivity Metrics

Performance Metrics
Version 6
?
Best Practices Metrics

• Pre-Project Planning
• Constructability
• Team Building
• Zero Accident Techniques
• Project Change Mgmt
• Design/Info. Tech.
• Materials Management
• Planning for Startup
• Quality Management

Project Environment Quality Management Constructio
n Productivity Metrics
?
?
?
1037 Projects (Cumulative)
54.19 Billion (Cumulative)
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Questionnaire Development
Version 7

• Cost Performance
• Schedule Performance
• Safety Performance
• Change Performance
• Rework Performance
• Construction
• Productivity Metrics

Performance Metrics
Version 7
Best Practices Metrics

• Pre-Project Planning
• Constructability
• Team Building
• Zero Accident Techniques
• Project Change Mgmt
• Technology Auto. / Integ.
• Materials Management
• Planning for Startup
• Quality Management

?
?
Major Upgrade !!! 100 Review/Rewrite 32
Reduction in Basic Questionnaire
1057 Projects (Cumulative)
56 Billion (Cumulative)
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Questionnaire

• Customers
• Member Companies
• Research Implementation
• Funded Studies
• Alliances
• BMPP

• Questionnaire
• Metrics
• Cost Schedule

• Safety

• Best Practices

• Environment
• Data

• Productivity
• Construction
• Engineering

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Questionnaire Streamlining Process
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Questionnaire Streamlining Process
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The Results
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Process of Determining Value of Best Practices
Determine Practice to BM
Revise Practice Use Questions or Drop Practice
Failed
Perform Preliminary Analysis (Correlation)
Survey Practice Use Performance
Add Practice to BMM Questionnaire
Preliminary Assessment
Passed
1. Recommended Status as BP 2. Value
of BP
Perform Comprehensive Analysis
Report Output
Continue Data Collection
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Preliminary AnalysisExpected Correlation
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Preliminary AnalysisNo Correlation
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Comprehensive Assessment
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Cost Savings
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Cost Savings

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

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Schedule Reductions
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Schedule Reductions
28 Month Total duration of average
building project x 31.7 Schedule
growth savings 8 Month Potential savings
for typical project
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Project Budget Factor
Actual Total Project Cost

(Initial Predicted Project Cost Approved
Changes)
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(No Transcript)
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Gap Analysis
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Comprehensive AssessmentImpact on Cost
Performance
The Effects of Best Practice Use by Industry
Sector Project Cost Impact
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Comprehensive AssessmentImpact on Schedule
Performance
The Effects of Best Practice Use by Industry
Sector Project Schedule Impact
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The Results
Safety PerformanceOwners Contractors
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14.30
14.20
13.10
13.00
14
12.20
11.80
Industry
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10.60
9.90
9.50
8.30
10
8.80
8.60
Est. 7.28
7.19
Recordable Incidence Rate
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6.12
5.32
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CII
4.31
3.44
4
3.00
2.66
2.30
1.03
1.67
1.59
1.60
2
1.02
0
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
325
413
477
497
527
613
644
770
518
765
995
936
1,115
Year and Work-hours (MM)
Note Industry based on OSHA SIC 15-17
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Benchmarking

• Is critical to continuous improvement process.
• Requires senior management commitment.
• Requires continual analysis and assessment.
• Requires a structured approach.
• Is not resource-intensive.
• Is available now.
• Is important to the bottom-line.

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Get Involved

• Measure Your Performance
• Attend a Benchmarking training session to get
  your password to Project Central CII
  Benchmarkings website
• Add your project data to Project Central at
  http//cii-benchmarking.org
• Assess
• Evaluate your performance
• Determine the gap
• Improve
• Use the Benchmarking and CII tools to improve

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You Need To Benchmark!