CII Performance Assessment 10-10 System Benchmarking and ... · •Provide the Industry with...
Transcript of CII Performance Assessment 10-10 System Benchmarking and ... · •Provide the Industry with...
CII Performance Assessment 10-10 System
Benchmarking and Productivity
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July 18, 2016 Singapore
The Singapore Chemical Industry Council (SCIC) and the Association of Process Industry (ASPRI)
Productivity Council’s Productivity Improvement Workshop
Welcome
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CII Singapore Project
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CII Embarks on Ambitious Research Project to Improve
Construction and Maintenance Productivity in Singapore
CII Previous Work
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1980s 1990s 2000s 2010s
General
Program
1999 Safety
Survey
2011 Productivity
Benchmarking Report
2016 CII Singapore
System
Pharma
Program
Continuous Improvement
Implement
Best Practices
Measure
Results
Identify Opportunities
to Improve
Select
Implementation
Tools
Conduct
Training
Compare to
Norms
CII Singapore – Performance Assessment Objectives
• Provide the Industry with Performance Norms
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CII Singapore – Performance Assessment Objectives
• Provide the Industry with Performance Norms
– Safety survey
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CII Singapore – Performance Assessment ObjectivesCII
• Provide the Industry with Performance Norms
– % Overtime by Industry Sector
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6.5 16.6412.82 11.98
0
10
20
30
40
50
60
Building (n=19) Infrastructure(n=11)
Heavy Industrial(n=96)
Light Industrial(n=223)
% O
vert
ime
4th Quartile
3rd Quartile
2nd Quartile
1st Quartile
Average
CII Benchmarking Objectives
• Provide the Industry with Performance Norms
– 1703 projects
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34
39
40
52
58
58
63
83
85
235
366
Pharmaceutical…
Foods
Natural Gas Processing
Metals…
Automotive Manufacturing
Environmental
Consumer Products…
Electrical Generating
Pulp and Paper
Oil Refining
Chemical Manufacturing
Project Type (Top 11)
Contractors, 776, 46%Owners, 927, 54%
Respondent
CII Benchmarking Objectives
• Provide the Industry with Performance Norms
• Provide Singapore Companies Tools for Self-analysis
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CII Benchmarking Objectives
• Provide the Industry with Performance Norms
• Provide Singapore Companies Tools for Self-analysis
• Quantify the Value of Best Practices
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-1.2%
6.3%
-10%
-5%
0%
5%
10%
15%
20%
High(N=29)
Low(N=24)
Co
st
Gro
wth
Planning Best Practice Index
Value of Practices - Owner Planning
• Front End Planning
• Alignment for FEP
• Planning for Start-up
=standard error of mean (90% confidence interval)
7.5% Absolute Difference
Value of Practices - Contractor Execution
-3.0%
9.2%
-10%
-5%
0%
5%
10%
15%
20%
High(N=12)
Low(N=13)
Co
st
Gro
wth
Execution Best Practice Index
• Constructability
• Project Risk Assessment
• Change Management
=standard error of mean (90% confidence interval)
12.2% Absolute Difference
CII Benchmarking Objectives
• Provide the Industry with Performance Norms
• Provide Singapore Companies Tools for Self-analysis
• Quantify the Value of Best Practices
• Benchmark Construction and Maintenance
Productivity
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Piping Construction Productivity
Construction Productivity: Gulf Coast vs. Other Locations
• Productivity analysis
between Gulf Coast and
other U.S. locations
Construction Productivity: Gulf Coast vs. Other Locations
Concrete
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5
10
15
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35O
n-G
rad
e (
CY
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Ele
va
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Sla
bs/O
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eck (
CY
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Are
a P
avin
g (
CY
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To
tal S
lab
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CY
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< 5
cu
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ya
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5-2
0 c
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-50
cu
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ya
rds
> 5
0 c
ub
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To
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ou
nd
atio
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(CY
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Co
ncre
teS
tru
ctu
res (
CY
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To
tal C
on
cre
te(C
Y)
Co
nc
rete
Co
ns
tru
cti
on
Pro
du
cti
vit
y
(wh
/CY
)
Gulf Coast - Median Other Locations - Median
Gulf Coast 19 9 18 28 21 24 22 18 36 18 40
Other
Locations15 10 8 24 6 8 6 11 24 10 41
Construction Productivity: Gulf Coast vs. Other Locations
Piping
Gulf Coast 33 23 5 5 38 31 26 5 8 38
Other Locations 10 10 2 2 17 14 15 2 2 28
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0C
arb
on
Ste
el (L
F)
Sta
inle
ss S
tee
l(L
F)
Ch
rom
e (
LF
)
Oth
er
Allo
ys (
LF
)
To
tal S
ma
ll B
ore
(LF
)
Ca
rbo
n S
tee
l (L
F)
Sta
inle
ss S
tee
l(L
F)
Ch
rom
e (
LF
)
Oth
er
Allo
ys (
LF
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To
tal L
arg
e B
ore
(IS
BL
) (L
F)Pip
ing
Co
ns
tru
cti
on
Pro
du
cti
vit
y(w
h/L
F)
Gulf Coast - Median Other Locations - Median
CII Benchmarking Objectives
• Provide the Industry with Performance Norms
• Provide Singapore Companies Tools for Self-analysis
• Quantify the Value of Best Practices
• Benchmark Construction and Maintenance Productivity
… An Impartial Confidential Venue for the Transfer of
Knowledge within the industry
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CII Confidentiality Policy - Summary of Key Features
• Company data are considered confidential.
• Data can be used to support CII benchmarking, research, and related academic
activities only if the confidentiality of companies submitting the data is protected.
• Access to data is limited to CII staff and authorized researchers only.
• All persons with access to CII data must sign confidentiality agreements and abide by
CII confidentiality policies.
• When data are provided in support of research activities, all confidential identifiers will
be removed and only essential subsets of data will be provided.
• All data published and/or presented must reflect the aggregate of at least 8 projects
from 3 separate companies.
• Reports and data files containing only individual project or company data are
considered confidential will not be published or provided to researchers.
• In cases where a disproportionate amount of data are provided by a single company,
CII will suppress publication of results until the data set is sufficiently large to mitigate
confidentiality or bias concerns.
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CII Model
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Levels of Use of Benchmarking
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Improve Efficiency Of A Business Unit
Improve Performance Of A Single Project Or A Group Of Projects
Improve Selected Performance Metrics (e.g. Productivity)
Benchmarking Lessons Learned
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• Senior management buy-in is vital to success
• A company champion/coordinator is essential
The Value of Benchmarking
• Improves project and company performance when used
as an ongoing practice
• Establishes improvement goals based on
external/competitive benchmarks
• Facilitates “best in class” performance
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Cost
Capacity
P90
P50
P10
CII 10-10 System Overview
• Performance Assessment System with simple and important
metrics
– 10 Input Metrics (Leading Indicators)
– 10 Output Metrics (Trailing indicators)
• Three survey types: New Projects, Maintenance, Turnaround
• Assesses project performance
• Provides actionable information
• Assesses productivity performance
• Research based
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Leading Indicators
• Planning
• Organizing
• Leading
• Controlling
• Human Resources
• Quality
• Sustainability
• Supply Chain
• Safety/EHS
• Design Efficiency (New Project Only)
• Maintenance Strategy (Maintenance Only)
• Interface Management (Turnaround Only)
• Information Management (Turnaround Only)
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Input Metrics
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SC
Input Metrics: Assessing Practices and Working Relationships
Input Metrics
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Input Metrics: Assessing Practices and Working Relationships
Input Metrics
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Input Metrics: Assessing Practices and Working Relationships
10-10 Questionnaires
• Questions are
– Yes/No
– 5-point scales (strongly agree - strongly disagree)
– Multiple choice questions
• Questions are mapped to input metrics
10-10 Leading Indictor Reporting
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Output Metrics – New Project
• Forecasted Project Cost Efficiency
• Construction Cost Efficiency
• Forecasted Project Schedule Efficiency
• Construction Schedule Efficiency
• Construction Cost Growth
• Construction Schedule Growth
• Construction Phase Burn Rate
• Project Management Team Size / Total Project Cost
• Craft Work Force / Construction Phase Cost
• Total Cost of Equipment / Total Quantity of Major Equipment
• TRIR
• DART
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The 10-10 Singapore System
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SC
Output Metrics: Assessing Project Outcomes
Estimated Construction Cost
Actual Construction Cost
The 10-10 Singapore System
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Output Metrics: Assessing Project Outcomes
Matching similar projects:
Start with all Projects: 1,800
• Survey Type [New Project]: 1,200
• Respondent [Owner]: 1,000
• Type [Refining]: 400
• Capacity Unit [BPD]:
60
Output Metrics
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Metric Description Maintenance STO
Maintenance Cost as a Percentage of ARV (owner)
Materials Service Level (owner)
Unplanned Downtime Percentage (owner)
Rework Percentage
TRIR
Planned and Scheduled Maintenance Percentage
Percentage of Preventive Maintenance Work
Overtime Percentage
Hours Spent on Training / Total Work Hours
Direct Work Percentage
Cost Growth
Feed Out/In Schedule Growth
Maintenance Craft Productivity
Productivity Metrics – New Project
• Concrete
• Structural Steel
• Instrumentation
• Painting
• Piping
• Scaffolding
• Site-work
• Insulation
• Electrical
• Major Equipment
– Pressure Vessels
– Atmospheric Tanks – Shop
Fabricated
– Atmospheric Tanks – Field
Fabricated
– Heat Transfer Equipment
– Boiler & Fired Heaters
– Rotating Equipment (w/drivers)
– Material Handling Equipment
(w/drivers)
– Power Generation Equipment
– Other Process Equipment
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𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 =𝑊𝑜𝑟𝑘 𝐻𝑜𝑢𝑟𝑠
𝑈𝑛𝑖𝑡 𝑂𝑢𝑡𝑝𝑢𝑡
Productivity Metrics – Maintenance / Turnaround
• Static Equipment
– Tanks
– Vessels
– Heat Exchangers, Coolers and
Fin-Fans
– Boiler/Furnace/Heater
– Valves and Piping Fittings
• Piping
– Small Bore (smaller than 3-inch)
– Large Bore (3-inch and larger)
• Rotating Equipment
– Compressors
– Pumps
– Gas and Steam Turbines
– Blowers and Fans
• Instrumentation – I/O Loops
• Electrical
– Motor Control Center
– Conduit and Wire
– Electrical Repair in Equipment
• Services – Scaffolding
• Insulation
– Piping
– Equipment
• Cleaning / Blasting and Painting
– Piping
– Tanks and Vessels
– Equipment including Exchangers
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Correlating Inputs and Outputs
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Project OutcomesPractices and working
Relationships
Correlating Inputs and Outputs
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y = -0.0762x + 0.4181
-80%
-40%
0%
40%
80%
120%
0 1 2 3 4 5
Co
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uctio
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Gro
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Alignment Score N = 81; R2 = 4.9%; p = 0.012
• The interfaces between project stakeholders were well managed.
• Key project team members understood the owner's goals and objectives of this project.
• Plan and progress including changes were communicated clearly and frequently amongst stakeholders
• Project leaders recognized and rewarded outstanding personnel and results.
• The key stakeholders (owner, design, and vendors) were fully aligned during Construction.
Timeline
• July 2016:
– System Launch
– Hands-on training on July 20
• August – December 2016
– Collect New Project, Maintenance and Turnaround Data
• December
– Launch Maintenance and Turnaround Reporting
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Call to Action
• Participating companies should provide a list of projects
and surveys that can potentially be submitted in 2016
• Both owner and contractors are to participate
• This will provide CII an estimate of how many surveys
should be expected by December 2016
• CII’s goal is a collect a minimum of 30 maintenance
surveys and 30 turnaround surveys in the first round
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Questions?
Daniel P. Oliveira, Ph.D.
Research Associate, CII
+1.512.232.3050
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For more information, please visit www.10-10program.org
Bob Ritter
Associate Director, CII
+1.512.232.3008
Construction Industry Institute
3925 W. Braker Lane (R4500)
Austin, TX 78759-5316 USA
https://www.construction-institute.org