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Benchmarking The Value of Best Practices
Benchmarking The Value of Best Practices
Benchmarking The Value of Best Practices
of
Best Practices
Annual Conference
Keystone, Colorado
Edesio Finol
Mayo 2003
Session Participants
Moderator
J ohn Tato - U.S. Department of State
Panelists
Bob Ogletree BE&K
Charlie Green Aramco Services Company
Bob Herrington J acobs
Steve Thomas - CII
Edesio Finol
Mayo 2003
Edesio Finol
Mayo 2003
Edesio Finol
Mayo 2003
YES
74%
Mayo 2003
NO
50%
YES
50%
Edesio Finol
Mayo 2003
NR
7%
YES
30%
NO
57%
benchmarking projects
Benchmarking efforts need to be focused on other types
of projects
Data systems should be more flexible/automated
Edesio Finol
Mayo 2003
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
Edesio Finol
Mayo 2003
Our Customers
Member Companies
Research and Implementation
Funded Studies
Alliances
Benchmarking Participants Program (BMPP)
Edesio Finol
Mayo 2003
Questionnaire
Questionnaire Development
Version 1
Performance
Metrics
Cost Performance
Schedule Performance
Safety Performance
Change Performance
Rework Performance
Version 1
Best
Practices
Pre-Project Planning
Constructability
Team Building
Zero Accident Techniques
Metrics
First version
Edesio Finol
209 Projects
$ 11.47 Billion
Mayo 2003
Questionnaire Development
Version 2
Performance
Version 2
Metrics
Best
Practices
Metrics
Refinements
Addition of Two practices
Edesio Finol
Cost Performance
Schedule Performance
Safety Performance
Change Performance
Rework Performance
Pre-Project Planning
Constructability
Team Building
Zero Accident Techniques
Project Change Mgmt
Design/Info. Tech.
442 Projects
$ 25.95 Billion
(Cumulative)
(Cumulative)
Mayo 2003
Questionnaire Development
Version 3
Performance
Metrics
Cost Performance
Schedule Performance
Safety Performance
Change Performance
Rework Performance
Version 3
Best
Practices
Metrics
PDRI
For Buildings
(part of PrePre-Project Planning)
Edesio Finol
Pre-Project Planning
Constructability
Team Building
Zero Accident Techniques
Project Change Mgmt
Design/Info. Tech.
745 Projects
$ 39.88 Billion
(Cumulative)
(Cumulative)
Mayo 2003
Questionnaire Development
Version 4
Performance
Metrics
Version 4
Best
Practices
Metrics
Electronic/Web
Questionnaire
Edesio Finol
Cost Performance
Schedule Performance
Safety Performance
Change Performance
Rework Performance
Pre-Project Planning
Constructability
Team Building
Zero Accident Techniques
Project Change Mgmt
Design/Info. Tech.
906 Projects
$ 49.68 Billion
(Cumulative)
(Cumulative)
Mayo 2003
Questionnaire Development
Version 5
Performance
Metrics
Cost Performance
Schedule Performance
Safety Performance
Change Performance
Rework Performance
Version 5
Best
Practices
Entire PDRI - (part of PrePre-
Metrics
Project Planning)
Materials Management
Planning for Startup
Edesio Finol
Pre-Project Planning
Constructability
Team Building
Zero Accident Techniques
Project Change Mgmt
Design/Info. Tech.
Materials Management
Planning for Startup
988 Projects
$ 52.15 Billion
(Cumulative)
(Cumulative)
Mayo 2003
Questionnaire Development
Version 6
Performance
Metrics
Version 6
Best
Practices
Metrics
Project Environment
Quality Management
Construction Productivity Metrics
Edesio Finol
Cost Performance
Schedule Performance
Safety Performance
Change Performance
Rework Performance
Construction
Productivity Metrics
Pre-Project Planning
Constructability
Team Building
Zero Accident Techniques
Project Change Mgmt
Design/Info. Tech.
Materials Management
Planning for Startup
Quality Management
1037 Projects
$ 54.19 Billion
(Cumulative)
(Cumulative)
Mayo 2003
Questionnaire Development
Version 7
Performance
Metrics
Version 7
Best
Practices
Edesio Finol
Metrics
Cost Performance
Schedule Performance
Safety Performance
Change Performance
Rework Performance
Construction
Productivity Metrics
Pre-Project Planning
Constructability
Team Building
Zero Accident Techniques
Project Change Mgmt
Technology Auto. / Integ.
Materials Management
Planning for Startup
Quality Management
1037 Projects
$ 55 Billion
(Cumulative)
(Cumulative)
Mayo 2003
Questionnaire
Custom
Customers
Member Companies
Research & Im
plementation
Implem
Funded Studies
Alliances
BMPP
Edesio Finol
Questionnaire
Metrics
Mayo 2003
Diagnose
Data Analysis
& 1st
Revision
Workshop
2nd
Revision
Workshop
February 5, 2002
March 4, 2002
Analysis/Value
of Best
Practices
Workshop
Final Revisions
&
Reprogramming
Power User
Workshop
Edesio Finol
Mayo 2003
The Results
Section
Description
Question
Delta
Percent
Change
Front End
-38
-24%
Best Practice
PrePre-Project Planning
0%
Best Practice
Constructability
-5
-39%
Best Practice
Team Building
0%
Best Practice
+2
+12%
Best Practice
-1
-7%
Best Practice
Materials Management
-39
-74%
Best Practice
Quality Management
-7
-36%
Proposed Best
Practice
-26
-65%
Other Practice
-15
-34%
0%
PDRI
Total
Edesio Finol
-32%
Mayo 2003
Determine
Practice to BM
Perform
Preliminary
Analysis
(Correlation)
Preliminary
Assessment
Passed
Continue
Data Collection
Edesio Finol
Perform
Comprehensive
Analysis
Report
Output
1. Recommended
Status as BP
2. Value of BP
Mayo 2003
Cost Performance
(Project Budget Factor)
1.03
1.01
4.8091
0.9941
4.5081
BF
CNT
0.97
3.8769
5.5
5.0
0.99
0.95
6.0
0.9682
4.5
4.0
3.5
Constructability
1.05
0.9525
0.93
3.0
0.91
2.5
<= 6 yrs
Edesio Finol
7 -12yrs
>12 yrs
Mayo 2003
Safety Performance
(RIR)
9.0
8.4769
10
9.1021
9
8.0988
8.0
8
RIR
7.0
7.0572
6.0
4.9222
5.0
5
3.4775
4.0
3.0
4
3
<= 6 yrs
Edesio Finol
ZAT
10.0
7 -12yrs
>12 yrs
Mayo 2003
Preliminary Analysis
Expected Correlation
10
Actual Data
Edesio Finol
Mayo 2003
Preliminary Analysis
No Correlat
ion
Correlation
10
Practice X
Constructability
Notional Data
Edesio Finol
Mayo 2003
Comprehensive Assessment
Best Practices Aggregate
vs Project Performances Aggregate
0.4
Respondent : Owner
Cost Category: All
Project Type: All
Location: Global
Industry Group: Heavy Industrial
Project Nature: All
0.3
0.2
0.1
Potential for
Improvement
0.0
-0.1
-0.2
4th Quartile
Low
Edesio Finol
3rd Quartile
2nd Quartile
1st Quartile
High
Mayo 2003
Cost Savings
Project Cost Growth vs. Standardized Practice Index
.10
Respondent: Owners
Cost Category: All
Project Type: All
Database: Global
Industry: Buildings
Project Nature: All
.08
.06
.04
.02
8.5%
-.00
-.02
-.04
-.06
-.08
-.10
4th Quartile
n=32
3rd Quartile
n=33
2nd Quartile
1st Quartile
n=30
n=33
Edesio Finol
Mayo 2003
Cost Savings
Edesio Finol
Mayo 2003
Schedule Reductions
Project Schedule Growth vs. Standardized Practice Index
.60
Respondent: Owners
Cost Category: All
Project Type: All
Database: Global
Industry: Buildings
Project Nature: All
.50
.40
.30
.20
31.7%
.10
0.00
-.10
-.20
4th Quartile
3rd Quartile
2nd Quartile
1st Quartile
n=28
n=30
n=29
n=22
Edesio Finol
Mayo 2003
Schedule Reductions
Edesio Finol
Mayo 2003
Gap Analysis
Project Outcome
0.10
0.05
0.00
-0.05
Opportunity
-0.10
-0.15
-0.20
Ver 1
1996
Ver 2
1997
Edesio Finol
Ver 3
1998
Ver 4
1999
Ver 5
2000
Ver 6
2001
Time
Mayo 2003
Comprehensive Assessment
Impact on Cost Performance
The Effects of Best Practice Use by Industry Sector Project Cost Impact
Owner
Best
Practices
Contractor
Bldg.
H.I.
Infra.
L.I.
Bldg.
H.I.
Infra.
L.I.
Pre Project
Planning
High
High
Low
High
Low
Med
High
Low
Constructability
Med
Med
Med
High
High
Med
Low
High
Change Mgmt
High
High
High
Low
Low
High
Low
Low
Design / Info
Technology
Low
Low
Low
Low
Low
Med
Low
Low
Team Building
Low
Med
Low
Med
Med
Med
Med
Med
Zero Accident
Techniques
Low
Low
Low
Low
Low
High
Med
Low
Edesio Finol
Mayo 2003
Comprehensive Assessment
Impact on Schedule Performance
The Effect
s of Best Practice Use by Industry Sector Project Schedule Impact
ects
Owner
Best
Practices
Contractor
Bldg.
H.I.
Infra.
L.I.
Bldg.
H.I.
Infra.
L.I.
Pre Project
Planning
Low
Med
High
Med
Low
Med
Med
Low
Constructability
Low
High
Low
High
Low
Low
Med
Med
Change Mgmt
Low
Low
High
Low
Med
Med
Low
Low
Design / Info
Technology
High
Med
Low
Med
High
Med
Low
High
Team Building
Low
Low
Med
Low
Med
High
Low
Low
Zero Accident
Techniques
Med
High
Low
Low
Low
Low
High
Low
Edesio Finol
Mayo 2003
The Results
Safety Performance
Recordable I ncidence Rate
16
14
12
12.20
I ndustry
11.80
10.60
10
8
9.50
8.80
8.60
8.30
7.19
6.12
9.90
Est.
7.28
5.32
CI I
4.31
3.44
3.00
2.66
2.30
1.60
1.59
1.67
1.03 1.02
0
1989 1990
325
413
Edesio Finol
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
477
497
527
613
644
770
518
765
995
936
2001
1,115
Mayo 2003
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
portant to the bottom
bottom-line.
Edesio Finol
Mayo 2003
Get Involved
Measure Your Performance
At
tend
Att
end a Benchmarking training
training session to
to get
your password
o Project Cent
ral CII
password tto
Central
Benchmarkings website
Add your project data
o Project Cent
ral at
data tto
Central
htt
p://cii-benchmarking.org
http://
Assess
Evaluat
e your performance
Evaluate
Det
ermine tthe
he gap
Determ
Improve
Use tthe
he Benchmarking and CII tools to improve
Edesio Finol
Mayo 2003
Mayo 2003