CII Benchmarking and Metrics Aker Kvaerner Data

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CII Benchmarking and MetricsAker Kvaerner Data

• Name of presenter M. Coy Campbell, P.E. Date
  10 June 03

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Benchmarking and Use of CII Data

• Presentation Agenda
• Overview of Aker Kvaerner Participation
• Review of Some of our Performance Data
• Our Interpretations
• Usefulness of CII Database
• Cause Effect Best Practice vs. Performance
• Input Quality Control of Projects

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CII Performance Metrics

• Performance Metrics
• Cost
• Schedule
• Safety
• Changes
• Rework

• CII Best Practice Use
• Safety (Zero Accidents)
• Team Building
• Constructability
• Pre-Project Planning
• Design/Information Technology
• Project Change Management
• Materials Management
• Planning for Start-up
• Quality Management
• Strategic Alliances

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AK Submitted Projects

• 2000
• H96198.91 - Bayer PU (grass roots)
• H96232 - Bayer Chlor-Alkali (grass roots)
• 2001
• H98109.04 - Lyondell Polyols (add-on)
• H99121 - Conoco Syria (grass roots)
• H00052.10 - Distrigas (add-on)
• 2002
• H97072 - Optimal
• H99129 - BP GTL
• H99171 - Dow Freeport
• H01118 - Chevron Sanha

• 1997
• H95130 - Evalca (add-on)
• 1998
• H94136 - Methanex (addition)
• H94156 - Agrevo (BW) (grass roots)
• H95021 - Akzo Nobel (grass roots)
• H95055 - Air Products (addition)
• H96019 - BASF-2EHA (BW) (addition)
• H96145 - Arco EB-1 (modernization)
• H97084 - TransCanada (addition)
• 1999
• H9811300 Bayer TDI (add-on)

Red Projects submitted by NJ office
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AK Implementation of CII Best Practices Use

• Comparatively Good In Safety
• Upward trending in Teambuilding Change
  Management 1997-2000
• 2001 saw decrease in most Best Practice
  Implementation
• What was the effect on Performance?

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AK Performance - Project Budget and Schedule

• Project Budget Factor
• Actual Total Project Cost
• Initial Predicted Project Cost Approved Changes
• Project Schedule Factor
• Actual Total Project Duration
• Initial Predicted Project Duration Approved
  Changes
• Quick Review
• Degradation in Performance in 2000 -2001
• Significant change in schedule factor in 2001

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AK Performance Analysis of Budget/Schedule
Factor - Individual Projects
Bwater
Bwater

• Further Investigation
• Two projects real outliers
• H96232 entered in 2000
• H0052.10 entered in 2001

TIME
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AK Performance - Project Cost Growth vs.
Competition

• Project Cost Growth Factor
• Actual Project Cost - Initial Predicted Project
  Cost
• Initial Predicted Project Cost
• Quick Conclusion
• Consistent 1997-1999
• Investigation on 2000 2001
• Outliers adversely impacted result
• Small sample size in 2000 (2 projects) 2001 (3
  projects)

Quartile
Factor
1st
2nd
3rd
4th
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Cost Growth Factor - Individual Projects
TIME

• Three Projects adversely affect outcome for Cost
  Growth

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AK Performance - Recordable Incident Rate
Quartile
RIR

• Recordable Incident Rate
• Total Recordable Cases x 200,000
• Total Craft Workhours
• Review Relatively Good performance until 2001

1st
2nd
3rd
4th
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Interpretations of Benchmarking Database Use

• Best Practice Implementation score corresponds
  with the company quartile performance
• Limited number of projects in the database skews
  data outliers have too great effect
• Our outlier was a project for a client that
  performs Capital Projects infrequently (and not a
  member of CII). Very poor project definition.
• Some good projects looked bad by analysis
• Of course, varying definition of successful
  projects
• AK investigated process for inputting projects
  and found very inconsistent again skewing our
  outputs
• Previously - Project questionnaires filled by
  project teams
• Now filled out by trained Benchmark Associate

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Recommendations Conclusions

• Ensure Consistency of project input.
• Use your trained Benchmarking Associate
• Add Filtering Mechanism to the database
  queries.
• Sometimes Outliers need to be seen but not heard
• The more projects entered, the better the trend
  analysis (Statistics 101!)
• The database is consistent in its evaluation
  (Best Practice Implementation vs. company
  Quartile)
• But.Trend analysis of Best Practice
  Implementation a successful project really is a
  soft, interpretive process