Presentation Title Goes Here

1

An Introduction to the Construction Industry
Institute

January 20, 2009
2
A research institute of leading owners,
contractors, and academics working together to
advance the business effectiveness and
sustainability of the worlds capital facilities.
3
History

• Established as a recommendation from The
  BusinessRoundtable Construction Industry Cost
  Effectiveness (CICE) Project to address
• - construction research
• - fragmentation of the industry
• Founded in 1983 by 28 companies now over 110
  members.
• First to bring research to the engineering-constru
  ction world.
• First owner-contractor-academic research
  collaboration for the constructed project.
• An industry forum for the engineer-procure-constru
  ct process.

4
Mission
Purpose
To measurably improve the delivery of capital
facilities.

• Enhance business effectiveness and sustainability
  of the capital facility life cycle
• Expand the global competitive advantage of its
  members through
• active involvement participation
• effective use of CII research findings, including
  CII Best Practices.

5
Owner Members
Abbott The AES Corporation Air Products and
Chemicals Alcoa Ameren Corporation American
Transmission Co. Amgen Anheuser-Busch
InBev Aramco Services Company Archer Daniels
Midland Co. BP America Bristol-Myers Squibb
COgt Cargill Chevron CITGO Petroleum Codelco-Chile
ConocoPhillips DFW International Airport The Dow
Chemical Company DuPont
Eastman Chemical Company Eli Lilly and
Company ExxonMobil Corporation General Motors
Corporation GlaxoSmithKline Hovensa L.L.C. Intel
Corporation International Paper Kaiser
Permanente Marathon Oil Corporation NASA Naval
Facilities Engineering Cmd. NOVA Chemicals
Corp. Occidental Petroleum Corp. Ontario Power
Generation Petrobras Praxair, Inc. The Procter
Gamble Co. Progress Energy
Rohm and Haas Company Sasol Technology Shell Oil
Company Smithsonian Institution Solutia Southern
Company Sunoco Tennessee Valley Authority Tyson
Foods U.S. Architect of the Capitol U.S. Army
Corps of Engineers U.S. Dept. of
Commerce/NIST/BFRL U.S. Dept. of Energy U.S.
Dept. of Health Human Srvcs. U.S. Dept. of
State U.S. General Services Administration U.S.
Steel Vale
6
Contractor Members
Parsons Pathfinder LLC Pegasus Global
Holdings Primavera Systems R. J. Mycka SB
Engineers and Constructors, Ltd. The Shaw
Group Siemens Energy SNC-Lavalin Technip URS
Corporation Victaulic Company Walbridge The Weitz
Company Worldwater Solar Technology WorleyParso
ns Zachry Zurich
Day Zimmermann dck worldwide, LLC Dresser-Rand
Company Emerson Process Management Fluor
Corporation Foster Wheeler USA Corporation Grinake
r-LTA/EPC Gross Mechanical Contractors GS
Engineering Construction Hargrove and
Associates Hatch Hill International Hilti
Corporation Jacobs JMJ Associates KBR Kiewit
Power Construction Lauren Engineers
Constructors M. A,. Mortenson Company Mustang
Adolfson Peterson Construction Aker
Solutions Alstom Power AMEC Atkins Faithful
Gould Autodesk AZCO Baker Concrete
Construction Barton Malow Company Bateman
Engineering N.V. Bechtel Group BIS Frucon
Industrial Services Black Veatch Bowen
Engineering Corporation Burns
McDonnell CBI CCC Group CDI Engineering
Solutions CH2M HILL CSA Group
7
Universities involved 1983-2009

• University of Alabama
• Arizona State University
• Auburn University
• Bucknell University
• Carnegie Mellon University
• University of Cincinnati
• Clemson University
• University of Colorado-Boulder
• Colorado State University
• University of California-Berkeley
• East Carolina University
• University of Florida
• Georgia Institute of Technology
• University of Houston
• University of Illinois
• Iowa State University
• University of Kansas
• University of Kentucky
• Lehigh University

University of New Mexico North Carolina State
University North Dakota State University Oklahoma
State University Oregon State University The
Pennsylvania State University University of
Pittsburgh Purdue University Polytechnic
University San Diego State University San Jose
State University Stanford University State
University of New York-Albany Vanderbilt
University Virginia Polytechnic Institute and
State University Texas AM University The
University of Texas at Austin University of
Washington University of Waterloo University of
Wisconsin-Madison Worcester Polytechnic Institute
8
CII Principles

• Place a premium on safety, ethics,
  continuousimprovement (cost, schedule and
  quality), and leadership.
• Owner / contractor member balance and influence.
• Promote a high level of knowledge transfer.
• Provide leadership development through member
  participation.
• High member involvement small professional staff.

9
CII A Leader in the Construction Industry

• Knowledge creation through CII research to define
  best practices, breakthroughs, and industry
  norms.
• Knowledge dissemination through CII research
  publications, implementation guides, educational
  materials, workshops, and conferences.
• Knowledge management, organization, and
  assessment of relevance of the 450-plus CII
  documents and publications.
• Knowledge assessment of the impact of CII
  practices through the benchmarking and metrics
  program.

Through these knowledge processes, CII enhances
the business effectiveness, sustainability, and
global competitiveness of CII members and
lifting the construction industry.
10
CII is the one place that owners, contractors
and academia work jointly on key initiatives to
improve our industry. The depth of knowledgeable
resources that actively participate is
unparalleled in the industry. CII is also the one
industry forum that through research provides
deliverables and tools that its members can
immediately put into practice. The benchmarking
metrics from its members consistently validate
the value of participation and membership. The
opportunity to network and learn from industry
leaders is also invaluable.
John W. Dalton, Sr. Mustang
11
Benefits of CII Membership

• Collaboration with leading industry, government,
  and academic institutions on key industry issues
  without the risk of anti-trust problems.
• Competitive edge through immediate access to new
  research findings, offering a first-to-market
  competitive advantage.
• Equal vote by all CII members in the selection of
  research and other CII activities.
• CII Product Library Free, unlimited
  organizational access to CII Products Online, a
  24/7 web-based resource of CII Best Practices,
  practices, products, and tools that when
  successfully implemented produce significant
  improvements in cost, schedule, and safety.

12
Benefits of CII Membership

• Networking and CII committee/team participation
  that lead to partnerships and long-term personal
  relationships.
• Education Programs to help members develop
  leadership and competence in their staff, from
  entry level to executive level, including online
  courses, modules for member self-instruction, and
  registered instructors for customized training.
• CII Implementation Training to integrate CII Best
  Practices into business strategies. CII
  implementation tools and workshops explain the
  methodology and applied skills required to
  implement CII research findings.
• CII Benchmarking Metrics Program provides tools
  for members to compare their capital and
  maintenance projects with the best in class.

13
Benefits of CII Membership

• Ability to input an unlimited number of projects
  into a secure database managed by CII where
  self-analysis tools point to CII resources to
  improve specific project parameters throughout
  the project process.
• Implementation support to integrate CII Best
  Practices into planning and execution processes,
  resulting in organizational improvements in
  planning, execution, and delivery of capital
  facilities projects.
• Member pricing on CII products,
  conference/workshops, education modules, and
  online training.
• Access to member-only products and events.

14
What Drives Our Industry Today?

• Work Force and Human Capability
• Increased Environmental Considerations
• Global Growth and Interconnectedness
• Productivity/Efficiency Improvement

14
15
CII Research Addressing the Drivers

• Driver 1. Workforce Human Capability
• 231 Construction Industry Craft Training
• 256 Project Site Leadership Role in Improving
  Construction Safety v
• 261 Optimizing Jobsite Organization v
• 269 Real-time Pro-Active Work Zone Safety in
  Construction v
• Driver 2. Increased Environmental Considerations
• 242 Front End Planning for Renovation/Revamp
  Projects
• 250 Sustainable Design Construction
• 264 Product Integrity Concerns in Low-Cost
  Sourcing Countries v
• 268 Project Definition Rating Index for
  Infrastructure Projects v

v Research Just Starting
16
CII Research Addressing the Drivers

• Driver 3. Global Growth and Interconnectedness
• 244 Global Project Control Mgt. Systems
• 257 Global Procurement Materials Management v
• 260 Reimbursable Contracts v
• 263 Globalization v
• Driver 4. Productivity/Efficiency Enhancements
• 215 Workforce View of Construction Productivity
• 233 Planning, Facilitating, Evaluating Design
  Effectiveness
• 245 Optimizing Engineering Value in Projects
• 252 Craft Productivity Research v
• 255 Adaptation of Ship Building Production
  Systems to Construction
• 258 Information Integration Work Process Changes
  v
• 266 Std. Approach to Identify/Define Owner Value
  Align EC Response v

v Research Just Starting
17
CII Practices (Research Findings)

• Project Planning Phase
• Attract and Maintain Skilled Workers
• Automated Identification
• Effective Use of Global Engineering Workforce
• Environmental Remediation Management
• Equitable Risk Allocation
• International Project Risk Assessment
• Leader Selection
• Modularization/Preassembly
• Organizational Work Structure
• Project Delivery and Contract Strategies
• Project Security
• Project Teams
• Technology Implementation
• Value Management
• Work Process Simulation

• Design/ Construction/ Startup Phases
• Craft Productivity Practices-
• Design for Maintainability
• Design for Safety
• Engineering Productivity Measurement-
• Piping Design
• Project Life
• Cost Schedule Control
• Employee Incentives
• Fully Integrated Automated Project Processes
  (FIAPP)
• Management of Education Training
• Managing Workers Compensation
• Project Health Assessment
• Small Projects Execution

18
CII Best Practices

• A process or method that, when executed
  effectively, leads to enhanced project
  performance.
• To qualify, a practice must be sufficiently
  proven through extensive industry use and/or
  validation.

• Pre-Project Planning
• Alignment
• Constructability
• Lessons Learned
• Materials Management
• Team Building
• Planning for Start-Up

• Partnering
• Quality Management
• Change Management
• Disputes Resolution
• Zero Accidents Techniques
• Implementation of Products
• Benchmarking

19
Opportunity for Influence
Major Influence
Rapidly Decreasing Influence
Low Influence
Level of Influence
Commitment
Influence
Project Expenditures
Scope Definition
Conceptual Analysis and RD
Pre-Project Planning
Basic Data and Scoping
Project Authorization
Production Engineering and Procurement
Construction
Engineering Complete
Turnover and Start-up
Project Life Cycle
20
The Owners experience
21
Those companies that actively participate in CII
find opportunities to interact with others who
share similar core values and come together for
the common purpose of improving not only their
own bottom line but the industry as a whole.
Carol P. Arnold DuPont
22
Cost Growth (Owner)
Note Average Budget 44 Million, submitted after
2002 (n127)
Better
23
Schedule Growth (Owner)
Note Average Planned Duration 131 weeks,
submitted after 2002 (n155)
Better
24
The Contractors experience
25
CII is absolutely the best resource available
for continuously improving a Project Delivery
System. Participation by either an Owner or
Contractor organization in CII brings with it the
valuable opportunity of rapid personnel
development largely due to the interaction of
people with the common objective of improving the
efficiency of capital deployment. People develop
and execute projects, CII exposes people to ever
improving project results.
Bernard C. FedakAker Solutions
26
Value of CII Best Practices - Budget (Contractors)
Note Average Budget 58 Million, submitted
after 2002 (n81)
Better
27
Value of CII Best Practices Schedule
(Contractors)
Note Average Planned Duration109 weeks,
submitted after 2002 (n81)
Better
28
CII Benchmarking Metrics

• 1,647 Projects Entered Since 1996
• Confidential
• Inexpensive
• Free with CII Membership (General Program)
• No Consultants Required (Self Evaluation)
• Compelling Metrics
• Unique Measures of Best Practices Productivity
  for Engineering and Construction
• Not a Black Box Easy to Comprehend
• External Performance Benchmarks of Cost,
  Schedule, Safety, Change, and Rework

29
The Value of Benchmarking

• Improves project company performance when used
  as an ongoing measure
• Determine performance relative to peers
• Establishes improvement goals based on external /
  competitive benchmarks
• Enables your company to understand achieve
  best in class performance

30
CII Continuous Improvement Process

• Continuous Improvement

Implement Best Practices
Measure Results
Conduct Training
Select Implementation Tools
Compare to Competition
Identify Opportunities to Improve
31
CII Member Resources

• Research Products
• Research Summaries
• Implementation Resources
• Research Reports

• Mentoring
• Communities of Practice
• Implementation Champion Program
• Experienced ISC members
• CII Staff

• Professional Development
• Executive Leadership Program
• Education Modules
• Courses
• Online Education
• Professional Development Continuum
• Registered Education Providers
• Web Seminars

CII Online ImplementationTool Box

• Events
• Annual Conference
• Performance Improvement Workshops
• Benchmarking Seminars / Workshops

32
"I have seen and experienced first-hand the truly
special collaboration between owners, contractors
and academics.  These efforts have produced new
knowledge and useful products positively
impacting the industry. But in my opinion the
most valuable legacy of CII's first 25 years has
been the outstanding personal and professional
development of the thousands of volunteer
participants.
Dr. G. Edward Gibson, Jr. University of Alabama
33
CIIs Net Value Add (NVA)
34
NVA for the Member Company

• Improved capital delivery
• Transparent methodology to measure progress
• Best Practice Use
• Productivity
• Industry
• Smarter, more confident, better prepared
  employees
• Implementation tool set
• Forum for company to company and company to
  academia relationships
• Industry intelligence and knowledge
• Recognition for employees

35
NVA for the Member Employee

• Builds
• Knowledge
• Leadership skills
• Confidence
• Industry intelligence
• Builds trusting relationships with customers and
  potential customers
• Grows the employees peer group owners,
  contractors and academics
• Increases employee value to member company
• Forum for self actualization accomplishing
  something for the greater good
• Satisfy professional development requirements

36
You are Invited to the CII Performance
Improvement WorkshopMarch 30 April 1, 2009

• Focused on
• CII Product Implementation
• Best Practices
• New Practices
• Case Studies
• Networking

Phoenix, Arizona
Register today
https//www.construction-institute.org/piw/index.c
fm
37
2009 CII Annual ConferenceLeadership for the
Next Generation July 28-30, 2009
The Peppermill Resort Reno, Nevada

• Over 500 Top Industry Attendees
• Presentations on
• New CII research
• CII product implementation case studies

• New CII Initiatives
• Professional Development
• Implementation
• Benchmarking
• Other
• Notable Speakers

38
New Research to be Unveiled at 2009 Annual
Conference

• Estimating as a Competency in Capital Projects
• Quality Management in the Capital Facilities
  Delivery Industry A Best Practice Refreshment
• Adaptation of Shipbuilding Production Systems to
  Construction
• Project Site Leadership Role in Improving
  Construction Safety
• Global Procurement Materials Management Best
  Practice Refresh
• Enhancing Expanding Innovation in the
  Construction Industry
• Information Integration Work Process Changes

39
CII Senior Staff

• Wayne Crew, CII Director
• Research, Breakthrough Strategy,
• Academic Liaison
• Steve Thomas, CII Associate Director
• Education Implementation
• Manuel Garcia, CII Associate Director
• Benchmarking Metrics
• Stephen Mulva, CII Associate Director
• Knowledge Management Branding
• Kim Allen, CII Associate Director

40
Questions?
Contact Jewell Walters jkwalters_at_mail.utexas.edu