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1 Construction Industry Institute 2003 Annual Conference Conference Proceedings Driving Greater Capital Efficiency Orlando, Florida

2 CII Member Companies 3M Abbott Laboratories Air Products and Chemicals Amgen Anheuser-Busch Companies Aramco Services Company BP America CITGO Petroleum Corporation Cargill Celanese ChevronTexaco Corporation Colectric Partners ConocoPhillips Dofasco The Dow Chemical Company DuPont Eastman Chemical Company ExxonMobil Corporation General Motors Corporation GlaxoSmithKline Intel Corporation International Paper Eli Lilly and Company NASA Naval Facilities Engineering Command Ontario Power Generation PSEG Power Petrobras Pfizer Praxair The Procter & Gamble Company Rohm and Haas Company Shell Oil Company Smithsonian Institution Solutia Southern Company Services Sunoco Tennessee Valley Authority U.S. Army Corps of Engineers U.S. Department of Commerce/NIST U.S. Department of Energy U.S. Department of Health and Human Services U.S. Department of State U.S. General Services Administration U.S. Steel Weyerhaeuser Company ABB Lummus Global ALSTOM Power AMEC AZCO BE&K BMW Constructors Baker Concrete Construction Bechtel Group Black & Veatch Bovis Lend Lease Burns & McDonnell Butler Manufacturing Company CCC Group CDI Engineering Group CH2M HILL Constructors/IDC CSA Group Chicago Bridge & Iron Company Day & Zimmermann International Dick Corporation Emerson Process Management Fluor Corporation Foster Wheeler USA Corporation Fru-Con Construction Corporation Graycor Hatch Hilti Corporation Honeywell International Jacobs Johnson Controls Kellogg Brown & Root Kiewit Construction Group Kværner Lockwood Greene M. A. Mortenson Company Parsons E&C Perot Systems Corporation Primavera Systems Rust Constructors S&B Engineers and Constructors Ltd. The Shaw Group Siemens Westinghouse Power Stevens Painton Corporation Structural Group Technip USA Corporation Turner Construction Company Victaulic Company of America Walbridge Aldinger Company Washington Group International Williams Group International Zachry Construction Corporation Zurich North America

3 Conference Proceedings Construction Industry Institute 2003 Annual Conference Orlando, Florida July 29 31, 2003

4 2003 Construction Industry Institute. The University of Texas at Austin. Conference attendees may reproduce and distribute this work internally in any medium at no cost to internal recipients. Printed in the United States of America.

5 Table of Contents Foreword v Director s Remarks 1 CII Director Ken Eickmann New Capital Direction for Industries in Transition 3 Keynote Speaker: John P. Surma, Jr. Safety Owner Involvement Makes A Difference 5 Owners Role in Safety Project Team The Value Management Toolkit 39 Value Management Toolkit Development Project Team PIP Americas Today, The World Tomorrow 63 Process Industry Practices Success: The Hallmark of Haradh 75 Case Study: Saudi Aramco Project Management Best Practices: A Status Check 107 Special Topic: CII Continuing Education Short Courses Implementation Session Only What Can CII Do for You? 129 First-Time Attendee Orientation Implementation Session Only OSHA and the Construction Industry Today 133 Featured Speaker: John L. Henshaw Engineering Productivity Measurement System 135 Engineering Productivity Measures II Project Team Owner Influence on Contractor Safety Performance 165 Case Study: General Motors Small Projects, Homeland Security, and Beyond 189 Benchmarking & Metrics Committee Small Projects Benchmarking 201 Benchmarking & Metrics Small Projects Team Implementation Session Only

6 Table of Contents Best Practices for Project Security 213 CII/NIST Best Practices for Project Security Team Implementation Session Only Risk Assessment for International Projects 225 Risk Analysis for International Projects Project Team Project Delivery & Contract Strategy Selection Tool 237 Special Topic: Project Delivery & Contract Strategy Education Team Implementation Session Only Defense Update 253 Keynote Address: Lt. Gen. T. Michael Moseley, U.S. Air Force Current U.S. Economic Outlook 255 Featured Speaker: Jack Guynn After the War is Over 257 Economic Forum Skilled Craft Workers Shortage Strategies 261 Addressing the Shortage of Skilled Craft Workers in the U.S. Project Team Using Technology to Build Technology 307 FIATECH Designing for Construction Automation 317 Design Practices to Facilitate Construction Automation Project Team Small Project Excellence Through Partnering 329 Case Study: International Paper Six Sigma Deployment in the EPC Business 349 Special Presentation: Mary Moreton Effectiveness of Innovative Crew Scheduling 357 Cost Effectiveness of Innovative Crew Scheduling Project Team Journey to Zero Injuries Using CII Best Practices 379 Case Study: BE&K Construction Company Carroll H. Dunn 399 Recipients of the Dunn Award of Excellence 401

7 Table of Contents Outstanding CII Researcher for Jimmie Hinze Outstanding Instructor for James M. Neil Emmitt J. Nelson Outstanding Implementer for Bernard J. Fedak Benchmarking User Awards for The Making of Disney s Animal Kingdom 415 Banquet Speaker: Jack Blitch

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9 Foreword Owners and contractors in the highly volatile business environment of construction are faced with increasing demands to do more with less. Clients want their products delivered faster, safer, at a lower cost, and with high quality. The end result: a call for greater capital efficiency. But how? Is it possible to eliminate inefficiencies in planning and executing capital investment projects? How can we more effectively invest in pre-project planning? Can we effectively emphasize both initial cost and life cycle value? And then come the questions about improved technologies, alternative materials, and new delivery models. All of these issues center on driving greater capital efficiency. For these reasons, we ve chosen Driving Greater Capital Efficiency as the 2003 Annual Conference theme. Our speakers, those reporting on CII research and case studies and those invited from other venues to share their insights, all have presentations that not only revolve around capital efficiency, but offer practical solutions. In addition, we will feature a panel of economists who will stimulate us to think beyond our industry and perhaps stir within each of us that spark that is necessary to find new ways of improving what we do. Our industry keynote speakers include John Surma, President of U.S. Steel; John Henshaw, Assistant Secretary of Labor for Occupational and Safety Health; and Jack Guynn, President and CEO of the Federal Reserve Bank of Atlanta. We will also have a defense update, and are honored to have Lt. Gen. Michael Moseley, U.S. Air Force, who has recently has been selected for reassignment as Vice Chief of Staff, Air Force Headquarters, in Washington, D.C. The CII Annual Conference is well known as a premier event in the construction industry. We feel the 2003 presentations, conference events, and the surroundings here in Orlando will continue the great tradition of CII Annual Conferences as being best in class. Enjoy the conference. KEN EICKMANN CII Director EMERSON JOHNS Conference Chair vii 7

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11 Director s Remarks Ken Eickmann Speaker Kenneth E. Eickmann, Director Construction Industry Institute Prior to joining CII as Director in September 1998, Ken Eickmann (Lt. Gen., U.S. Air Force, Retired) enjoyed a distinguished and highly decorated 31-year career in the U.S. Air Force. Eickmann is a Registered Professional Engineer and a Certified Acquisition Professional in acquisition logistics, program management, and systems planning, research, development, and engineering. He is a Senior Lecturer in Civil Engineering at The University of Texas at Austin. In 1999, he was named a Distinguished Graduate of the UT Austin College of Engineering. He holds a bachelor s degree in mechanical engineering from UT Austin, a master s degree in systems engineering from the Air Force Institute of Technology, and is a graduate of the University of Michigan School of Business and the John F. Kennedy School of Government, Harvard University. 1

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13 New Capital Direction for Industries in Transition Keynote Address: John P. Surma, Jr. Abstract The construction industry has always been a significant supplier to and customer of the steel industry. As the steel industry begins an overdue process of global consolidation and restructuring, new challenges and opportunities will be presented to the construction industry. John P. Surma, president of United States Steel Corporation, will discuss U.S. Steel's domestic and international expansion plans in relation to the construction industry. He will also discuss trends in the supply of steel to the construction industry. Keynote Speaker John P. Surma, Jr., President United States Steel Corporation John Surma began his career in 1976, when he joined Price Waterhouse. His experience also includes service with the Federal Reserve Board and a number of companies in the steel, oil and gas, chemicals, mining, and manufactured products industries. In 1997, Surma was named senior vice president of finance and accounting for Marathon Oil. He assumed the position of assistant to the chairman of USX Corporation on September 1, When USX split from Marathon last year, he became vice chairman and chief financial officer of United States Steel Corporation. He assumed his current post in March Surma graduated from Pennsylvania State University with a bachelor s degree in accounting. 3

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15 Safety Owner Involvement Makes A Difference Owners Role In Safety Project Team Learning Objectives Abstract Learn about the importance of owner influence on safety. Find out how owners influence safety performance. The research findings of this team present a compelling case regarding the influence of owners on construction safety. Owner influence on construction safety is exhibited in several ways: selecting safe contractors, imposing contractual requirements on contractors to support project safety, and being actively involved in safety during the construction process. Specific information will be shared in the implementation session about contractor selection, contract requirements, and the active involvement of owners in the safety process. Plenary Session Presenter John J. Mathis, Manager of Safety Services Bechtel Corporation John Mathis has over 29 years of experience in the construction industry. He is currently Manager of Safety Services, Globally for Bechtel Corporation. John s Environmental, Safety, and Health (ES&H) assignments have included managing safety across a broad range of business units that include nuclear and fossil power, petro-chemical, mining and metals, pipeline, and infrastructure projects. John worked on many key project assignments with Bechtel before moving into positions as, Manager of ES&H for Bechtel Construction Company and ES&H Manager Bechtel North America Region. John has been recognized as a leader in Bechtel s drive to achieve and sustain Zero Accidents on a worldwide basis and has played a major role in the development of Bechtels current ES&H management system tools and processes. 5

16 Safety Owner Involvement Makes A Difference Implementation Session Moderator John J. Mathis, Manager of Safety Services Bechtel Corporation Implementation Session Participants William C. Beck, Vice President, Quality & Safety Parsons E&C David T. Carter, Director of Safety Fluor Corporation A. Dennis Cobb, Regional Safety Consultant DuPont Engineering Mark Elfrink, EHS Manager Anheuser-Busch Companies, Inc. John S. Flannery, Principal Consultant, Project Management HSE ConocoPhillips Phalen D. Frey, Corporate Safety, Health & Environmental Director Austin Industries, Inc. Jimmie W. Hinze, Professor University of Florida William Pruss, Project Manager, Iron & Steel U.S. Steel Fred Rodheim, Construction Safety Manager Abbott Laboratories 6

17 Safety Owner Involvement Makes A Difference Owners Role In Safety Project Team Introduction There are many parties involved in the process of constructing most major facilities. These parties include contractors, subcontractors, vendors, designers, sureties, financial agencies, attorneys, accountants, engineers, consultants, and several others. While each of these parties does not necessarily play a role in every project, one party is invariably involved in every project, the facility owner. The facility owner, or owner, obviously plays a significant role in every project that is constructed. But what is the nature and extent of the owner s influence on project safety performance? The research was undertaken by conducting personal interviews with a carefully developed questionnaire. While the titles of the persons being interviewed varied, the person was generally the owner s top representative on the project who had a full-time responsibility for safety. The questions in each interview were focused on the practices that were employed on a single large project (half of the projects employed more than 550 workers), but some individuals gave responses representing the practices employed on a group of small capital projects. Projects were either ongoing projects, or projects completed within the past two years, as long as the information requested in the questionnaire was available. Summary Better safety performances are related to the following practices of owners: Project context. Certain project characteristics were associated with better safety performances, including: petrochemical projects, private projects, open-shop projects, projects with design-build contracts, projects of fairly large or small size, projects working one shift, and projects working five or less workdays. Careful selection of safe contractors. Proactive criteria are used to evaluate and select contractors by owners aggressive in safety. These include TRIR on the past projects, qualifications of the contractor s safety staff, qualifications of the contractor s project management team, and the quality of the contractor s overall safety program. Contractual safety requirements. Five key contractual requirements were identified and they are listed as follows: Contractor must place at least one full-time safety representative on the project. Contractor must submit the resumes of key safety personnel for the owner s approval. Contractor must provide specified minimum training for the workers. Contractor must submit a site-specific safety plan. Contractor must submit a safety policy signed by its CEO. 7

18 Safety Owner Involvement Makes A Difference Owner s proactive involvement in the safety practices of projects. In this study, the key measurements employed by the owners with better safety performances are identified as: Owners set their expectations on safety from the very beginning, especially the zeroinjury objective. Owners impose requirements on the safety program developed by the contractors and emphasize specific items, including: emergency plans, daily JSAs (job safety analysis) conducted on the project sites, and substance abuse programs. Owners monitor near misses and the safety inspection records on the projects, in addition to other types of injury statistics. Owners maintain the accident statistics by contractors on their projects, and include the contractor s injuries in their own accident records. Owners establish a behavior-oriented safety recognition program and contribute funds to the program. Owners actively participate in safety training and orientation and verify the comprehension of the training (such as by testing). Owners assign a full-time safety representative on site with various responsibilities including: enforcing safety rules; reviewing safety performance on site and submitting reports to the home office; monitoring pre-task analysis programs; participating in safety recognition programs; and participating in safety and/or tool box meetings. 8

19 Safety Owner Involvement Makes A Difference Owners Role In Safety Project Team Knowledgeable Points of Contact William C. Beck Vice President, Quality & Safety Parsons E&C 125 West Huntington Drive Arcadia, CA P: (626) F: william.beck@parsons.com Bradley Burris Project EHS Manager Intel Corporation 145 S. 79th Street Chandler, AZ P: (480) F: bradley.burris@intel.com David T. Carter Director of Safety Fluor Corporation One Fluor Daniel Drive Mail Code A2S Aliso Viejo, CA P: (949) F: tim.carter@fluor.com Kenneth E. Christ Fellow/Group Leader Solutia Inc. P. O. Box St. Louis, MO P: (314) F: kechri@solutia.com A. Dennis Cobb Regional Safety Consultant DuPont Engineering 7909 Parkwood Circle Drive Houston, TX P: (713) F: a-dennis.cobb@usa.dupont.com Mark Elfrink EHS Manager Anheuser-Busch Companies, Inc South 3 rd Street St. Louis, MO P: (314) F: mark.elfrink@anheuser-busch.com William B. Fehling Global Construction Safety Supervisor Air Products and Chemicals, Inc Hamilton Blvd. Allentown, PA P: (610) F: fehlinwb@apci.com John S. Flannery Principal Consultant, Project Management HSE ConocoPhillips South Tower 1000 South Pine Ponca City, OK P: (580) F: john.s.flannery@conoco.com Phalen D. Frey Corporate Safety, Health & Environmental Director Austin Industries, Inc. P. O. Box 1590, Suite 105 Dallas, TX P: (214) F: pfrey@austin-ind.com Thomas W. Hardesty Corporate Safety Manager Celanese Acetate, LLC 2300 Archdale Dr. Charlotte, NC P: (704) F: tom.hardesty@celaneseacetate.com 9

20 Safety Owner Involvement Makes A Difference Jimmie W. Hinze Professor University of Florida Rinker School of Building Construction P. O. Box Gainesville, FL P: (352) F: hinze@ufl.edu Christopher V. Kirby Global Engineering Safety Director Praxair, Inc. 175 E. ParkDrive, S Tonawanda, NY P: (716) F: christopher_kirby@praxair.com John J. Mathis Manager of Safety Services Bechtel Corporation 3000 Post Oak Blvd., MS 24 Houston, TX P: (713) F: jjmathis@bechtel.com Jerry Metcalf Safety/Environmental Manager Hilti, Inc South 122 nd East Ave. Tulsa, OK P: (918) F: metcjer@us.hilti.com Joseph Milligan Sr. Manager Safety Engineering GlaxoSmithKline 2200 Renaissance Blvd. Suite 105 King of Prussia, PA P: (610) F: joseph.j.milligan@gsk.com Danny Oubre Director of Environmental, Health, and Safety The Shaw Group, Inc United Plaza Blvd. Baton Rouge, LA P: (225) F: danny.oubre@shawgrp.com William Pruss Project Manager, Iron & Steel U.S. Steel Edgar Thomson Plant, MS 16E 13 th St. and Braddock Ave. Braddock, PA P: (412) F: bpruss@uss.com Fred Rodheim Construction Safety Manager Abbott Laboratories D7SC Building P14/ Sheridan Road North Chicago, IL P: (847) F: fred.rodheim@abbott.com Michael F. Schwimmer Project Management Consultant ChevronTexaco Project Resources 4800 Fournace Place, Rm W156 Bellaire, TX P: (713) F: mikeschwimmer@chevrontexaco.com Paul Weida VP Safety and Health Black & Veatch Lamar Overland Park, KS P: (913) F: weidap@bv.com 10

21 Safety Owner Involvement Makes A Difference Gary L. Wilson Director, Safety & Management National Center for Construction Education & Research P. O. Box Gainesville, FL P: (352) F: gary@nccer.org Konstantine D. Xoinis Sr. Manager, Contract Projects Transmission/Power Supply Tennessee Valley Authority 1101 Market Street, LP 3A Chattanooga, TN P: (423) F: kdxoinis@tva.gov 11

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49 The Value Management Toolkit Value Management Toolkit Development Project Team Learning Objectives Abstract Learn about 43 Value Management Processes (VMPs) that go beyond basic project management. Understand the content and structure of the new CII Web-based publication, The Value Management Toolkit. See CII s Web-based VMP Selection Tool. Hear about tools that offer additional assistance for a select group of VMPs. This CII project team has an interactive Web-based product to help you meet project value objectives, The Value Management Toolkit. The presentation will describe the function and features of the Toolkit to facilitate the selection of the right VMPs for the project, with how-to tools for implementation assistance. The Implementation Panel will present an overview of the Web publication and highlight three innovative VMPs. The panel will also demonstrate the use of the VMP Selection Tool and discuss a live demonstration project. Plenary Session Presenter Katherine F. Bethany, Value Engineering Manager, Overseas Buildings Operations U.S. Department of State Kathy Bethany has held her current position since She also is the chair of the CII Value Management Toolkit Project Team. Bethany has past experience as project manager, cost estimator, and scheduler at the Voice of America and as a project controls specialist at Sandia National Laboratory. She began her career as an engineering aide for the U.S. Army Corps of Engineers in Saudi Arabia. Bethany earned a degree in civil engineering from Old Dominion University and an MBA from the University of New Mexico. 39

50 The Value Management Toolkit Implementation Session Moderator Tamlin C. Antoine II, Program Manager for Construction of Facilities, Jet Propulsion Laboratory National Aeronautics & Space Administration Tam Antoine is responsible for the administration of a $50 million annual program. Antoine began his career with NASA in 1983 as a facility project manager. Prior to joining NASA, he served as a project architect for various architectural firms. Antoine received a bachelor s degree in architecture from Hampton Institute, a Certificate in Engineering Management for Construction from UCLA, and a MBA from the University of La Verne. He is a Registered Professional Architect in the District of Columbia and the State of Maryland. Implementation Session Participants William H. Hunt, Chief Estimator, Property Development Division U.S. General Services Administration Steven D. Lindholm, Construction Technology Leader The Procter & Gamble Company James T. O Connor, C. T. Wells Professor of Project Management The University of Texas at Austin William C. Thorsen, Advanced Project Planner, Worldwide Facilities Group General Motors Corporation Jack D. Yarbrough, Quality Engineer Jacobs 40

51 The Value Management Toolkit Value Management Toolkit Development Project Team Executive Summary Best practices, value enhancing practices, value management, value engineering all are buzzwords used throughout the engineering and construction industry with much confusion and mystery surrounding them. Project teams, and the companies that sponsor them, are currently overwhelmed by the number, diversity and complexity of value management processes (VMPs) available to them for implementation. The result is that many companies cannot get value management programs defined, organized or implemented on a project level. The CII Value Management Toolkit Development Project Team (PT 184) has developed a Web-based publication, The Value Management Toolkit, to address the challenges that organizations face in the awareness, understanding, selecting and implementing the myriad of VMPs available today. This toolkit can be used at an organization s program level to assist in developing a strong value management program, but is equally focused at the project level. The Value Management Toolkit provides an overview of 44 different VMPs and characterizes each VMP with nine descriptive fields of information. These VMPs are all unique, optional processes that can contribute significant value to a capital facility project but are not considered part of conventional project management. The Toolkit also includes more than two dozen implementation tools in the form of case studies, benchmarking and metrics data and howto procedural guidance at the program and project levels. The premier feature of the Toolkit is a computer-based VMP selection tool for assisting project teams in selecting which of the 44 VMPs are best suited for their project. The Toolkit s objectives are threefold: Increase industry awareness of the forty four VMPs, Facilitate selection of the right VMPs for a project, Offer how-to tools for implementation. Twelve Toolkit project value objectives categories have been identified: 1. Security of personnel or facilities 2. Operations and maintenance safety and health 3. Construction safety and health 4. Regulatory compliance 5. Capital cost efficiency 6. Operating cost efficiency 7. Maintenance cost efficiency 8. Product or service quality 9. Construction quality 10. Schedule optimization 11. Environmental stewardship 12. Containment of risk or uncertainty 41

52 The Value Management Toolkit Value Management, as defined in this Toolkit, is the collection of processes or efforts by which organizations can proactively pursue one or more project value objectives. These processes are referred to as Value Management Processes. Value Management efforts are needed in order to maximize the potential of a project team and to achieve higher levels of performance pertaining to the owner s project value objectives. Organizations that most effectively implement and use VMPs on a routine basis are those that also have a strong Value Management Program. Value Management Programs are spearheaded by individuals with a vision to promote the use of Value Management Processes within their organizations and are actively supported by upper management. Value Management Programs have a systematic, planned approach to the implementation and support of Value Management Processes, have the resources to train or hire facilitators and collect and maintain metrics in order to improve the program. A Value Management Process (VMP) is a defined, unique, yet optional process that can enhance value of facility. Secondly, as defined for the purposes of this Toolkit, a VMP is not currently viewed as a part of conventional project management. Examples of conventional project management include master planning, safety management, cost control and schedule control. In addition, a VMP can either be a widely accepted practice; such as Value Engineering, or a relatively new, yet proven practice; such as, Functional Analysis Concept Development. Furthermore, all VMPs can be classified as project level VMPs or program level VMPs. Project level VMPs are those that are targeted specifically for individual project use. Examples of project level VMPs include Pre-Project Planning and Design to Capacity. Program level VMPs are those processes that are applied on a project level but must first be implemented on an organizational level in order to be effective on the project. Examples of program level VMPs include Total Quality Management and Sourcing Strategies. As Safety Management should be treated as a fundamental component of standard project management and not treated as optional, it is not considered in this Toolkit to be a VMP. Thus, CII s Zero Accidents process and the Design for Safety Toolkit are not addressed in this Value Management Toolkit. Safety should never be compromised and all project teams should effectively employ the various safety oriented best practices to their fullest extent. 42

53 The Value Management Toolkit Value Management Toolkit Development Project Team Knowledgeable Points of Contact Tamlin C. Antoine II Program Manager for Construction of Facilities Jet Propulsion Laboratory National Aeronautics & Space Administration Mail Stop Oak Grove Drive Pasadena, CA P: (818) F: Katherine F. Bethany Value Engineering Manager Overseas Building Operations U.S. Department of State OBO/PE/DE Washington, D.C P: (703) F: Heesung Cha Graduate Research Assistant The University of Texas at Austin Department of Civil Engineering ECJ 5.02 Austin, TX P: 512/ Roger A. Chorba Project Engineer DuPont Engineering 6324 Fairview Road Charlotte, NC P: (704) F: Naser M. Chowdhury Product Engineering Manager Air Products and Chemicals, Inc Hamilton Blvd. Allentown, PA P: (610) F: William H. Hunt Chief Estimator Property Development Division U.S. General Services Administration 401 West Peachtree Street, Rm Atlanta, GA P: (404) F: Steven D. Lindholm Construction Technology Leader The Procter & Gamble Company Beckett Ridge Technical Center 8256 Union Centre Blvd. LP 313 West Chester, OH P: (513) F: William McNab Manager, Project Implementation Dofasco, Inc. P. O. Box 2460 Hamilton, ON L8N 3J5 CANADA P: (905) F:

54 The Value Management Toolkit James T. O Connor C. T. Wells Professor of Project Management The University of Texas at Austin Civil Engineering CEPM ECJ University Station C1752 Austin, TX P: (512) F: jtoconnor@mail.utexas.edu Brian C. Preston Project Engineer BE&K University Plaza 242 Chapman Road, Ashford Bldg. Newark, DE P: (302) F: prestonb@bek.com William C. Thorsen Advanced Project Planner Worldwide Facilities Group General Motors Corporation Mail Code Technology Drive Troy, MI P: (248) F: william.thorsen@gm.com Jack D. Yarbrough Quality Engineer Jacobs 5995 Rogerdale Road Houston, TX P: (832) F: jack.yarbrough@jacobs.com John C. Rotroff Project Manager Primary Engineering U.S. Steel One North Broadway MS-80C Gary, IN P: (219) F: jcrotroff@uss.com 44

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73 PIP Americas Today, The World Tomorrow Process Industry Practices Learning Objectives Abstract See how PIP practices work in the process, pharmaceuticals, pulp and paper, and power industries. Learn about PIP harmonization and knowledge management processes. See the metrics on adoption and implementation successes. Hear about membership, subscription, and licensing growth. Discover initiatives aimed at global use of PIP Practices. Process Industry Practices (PIP), a sister organization to CII, celebrated its 10th anniversary in January Over 60 companies are now involved as members, subscribers, and licensees and over 430 practices are published in eight engineering disciplines. The PIP Implementation Resource Center provides significant information to member companies on adoption/ implementation metrics, success stories, work processes, and tools. The successful application of PIP Practices has been estimated to achieve 2 6 percent of total installed cost savings on projects. Now a newly formed PIP Globalization Committee is taking the next step to meet the expanding needs of PIP members and users. Plenary Session Presenter Joerg U. Kemnade, Vice President, Process Technology and Engineering Degussa Corporation Joerg Kemnade joined Degussa in 1978 as a process and project engineer and has had varying assignments and increasing responsibilities over the past 25 years. He has been a project manager for projects in Germany, Austria, Sweden, Canada, and the U.S. He has been active in both CII and the Process Industry Practices initiative for the past several years. A native of Germany, Kemnade earned master s and Ph.D. degrees in chemical engineering from the University of Darmstadt and the University of Karlsruhe. 63

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75 PIP Americas Today, The World Tomorrow Process Industry Practices Summary The Process Industry Practices (PIP) Initiative, now in its eleventh year, has made significant progress in developing and applying those common industry practices many executives have been looking for to enhance the engineering, procurement, and construction process. The standards harmonization process is in place and has delivered over 460 Practices in eight engineering disciplines. The continuing growth of the PIP members consortium and its related programs is paying dividends in projects across the Americas, and PIP members are coming to realize the importance of their work in an expanded, global effort. With good adoption and implementation of the Practices now being achieved at home, PIP is taking the next steps in meeting both members and users needs in other countries and in related industries. Discussion Process industry companies in the U.S. are primarily global companies that compete on a worldwide basis. Before the establishment of PIP in 1993, no U.S. or global set of voluntary, recommended practices existed for the detailed design, procurement, and construction of manufacturing facilities. Contractor firms do practically all of that type of work; few owner companies do their own production engineering and construction. Similarly, no set of industry standards exists across the various technical disciplines. Technical societies such as the Instrumentation Systems and Automation Society (ISA), the American Society of Mechanical Engineers (ASME), the American Petroleum Institute (API), the American Concrete Institute (ACI), and others offer standards in specific areas. However, many required topics are not covered and owners as well as contractors must develop more detailed, specific requirements to complete projects while citing the array of industry standards as a design basis for the specification. Historically, most owner firms have used specific, company-internal standards (practices and guides) to build and maintain their plants. The result is that the contractor s engineers, who move from one job to another, spend time learning a new and often different set of design standards and practices when working with a different owner. Likewise, construction workforces must learn a new set of installation standards and practices, and procurement activities also need to be redefined from job to job. Early analysis of the PIP concept, that is, harmonizing standards, indicates capital savings potential of two to six percent of the total installed cost (TIC) of a plant. These projected savings include reduced engineering time, reduced field labor, and procurement savings. Members are now beginning to report savings in TIC as well as in other areas. Reduced costs for internal maintenance of standards, reductions in materials inventories, lower-cost engineered solutions to common designs, and savings in other areas are being reported by PIP members. 65

76 PIP Americas Today, The World Tomorrow Since its inception, PIP has grown to include 37 member companies, 14 subscribers, and 10 licensees. The impressive group of PIP participants and users represents well over 70 percent of the U.S market share of process industry revenues. The harmonization process used by PIP is being displayed to related industry segments such as pulp and paper, pharmaceuticals, and power for possible application of PIP Practices in eight engineering disciplines. A key principle of PIP is to support the development of voluntary recommended Practices based on compilation and harmonization of existing internal standards of member companies. In keeping with the original vision of PIP, recommended Practices based on new material are developed only where harmonization of existing material is not adequate and the need for the Practice is clearly demonstrated. Work that is being performed adequately by other organizations (e.g., ISA, API, ASME, ACI, and others) is not duplicated. Instead, PIP continues to work successfully with these organizations to identify and converge on a comprehensive set of industry practices. PIP member companies and subscribers enjoy the benefit of the availability of all Practices via the Internet. The new PIP Implementation Resource Center, now available online to PIP members, provides significant, useful information for members electronically. Subjects include work processes, success stories, metrics, lessons learned, and examples. Paper copies of published Practices are available and sold to non-members. PIP Practices are already in use in many countries around the world. A newly formed PIP Globalization Committee is developing strategies and action plans to expand the global use of the Practices. Additional information is available on the PIP website: 66

77 PIP Americas Today, The World Tomorrow Process Industry Practices Knowledgeable Points of Contact Bernard C. Ebert Director Process Industry Practices 3925 West Braker Lane (R4500) Austin, TX P: (512) F: (512) Joerg U. Kemnade Vice President, Process Technology and Engineering Degussa Corporation P. O. Box 868 Theodore, AL P: (251) F:

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85 Success: The Hallmark of Haradh Case Study: Saudi Aramco Learning Objectives Abstract Learn about the impact and power of planning on overall completion of a mega project. Learn about the role of proper materials management towards project success. See how a well implemented quality program can avoid rework and enhance project quality. Find out how a mega project can have over 49 million construction work-hours without a lost work day. Haradh Gas Plant is one of the largest gas plants in Saudi Arabia. It was built in a record time of 29 months from initial design phase to completion. The major factors attributed to this success are a strong integrated project team, implementation of CII Best Practices, power of planning, proactive management, innovation, attention to quality, and safety. The plant, in its full capacity, contributes 1.5 billion standard cubic feet per day of sales gas to Saudi Arabia s Master Gas System. Featured Speaker Isam Alwan Al-Bayat, Vice President, Project Management Saudi Aramco Since joining Saudi Aramco in 1971, Isam Alwan Al-Bayat has had steadily increasing responsibility in the company and has served in a variety of positions. In 1999, he became president and CEO of Saudi Refining, Inc. in Houston, Texas. He returned to Saudi Arabia in August 2001 to Aramco s Domestic Joint Ventures. Al-Bayat holds an electrical engineering degree from the University of Basra (Iraq) and a master s degree in electrical engineering from King Fahd University of Petroleum and Minerals in Saudi Arabia. 75

86 Success: The Hallmark of Haradh Implementation Session Moderator Salem H. Shaheen, Manager, Haradh Gas Plant Projects Department Saudi Aramco As manager, Salem Shaheen was in charge of building the $2 billion Haradh Gas Plant project. He joined Saudi Aramco in 1978 and has had increasing responsibility through a variety of assignments in engineering and project management. He is active in the Project Management Institute Arabian Gulf Chapter, serving as the current chair, a position he also held from He earned a bachelor s degree in civil engineering from King Fhad University of Petroleum and Minerals, Dharan, and completed the Saudi Aramco Program for Executives at the University of Virginia. Implementation Session Participants Hatem Dahleh, Project Manager, Haradh Project Consolidated Contractors Company W.L.L. Segundo Fernandez, Engineering Superintendent, Haradh Gas Plant Department Saudi Aramco Mohamed Nanji, Vice President, Far East Foster Wheeler International Corporation Mohammed Sharief Qureshi, Senior Project Engineer, Haradh Gas Plant Projects Department Saudi Aramco Tadae Takahashi, Site Project Manager, Haradh Project JGC Corporation Hidenori Yashima, Project Manager, Haradh Project JGC Corporation 76

87 Success: The Hallmark of Haradh Case Study: Saudi Aramco Executive Summary The Haradh Gas Program consists of the gas plant; upstream gas gathering manifolds and transmission pipelines system; downstream gas and condensate pipeline network; a residence community for 1,000 employee with a Boeing 737-capable landing air strip; and a joint project of Saudi Aramco with the Saudi Electric Company to provide a new 100 MVA substation and two 120-mile long, 230 and 380 kv overhead transmission lines to deliver power to the Haradh Gas Plant, upstream facilities, and the Haradh community. The gas plant is designed to process 1.6 billion standard cubic feet per day (BSCFD) of a combined raw feed of sweet and sour gas and delivers 1.5 BSCFD of sales gas to Saudi Arabia s Master Gas System. The plant also recovers 170,000 barrels per operating day (BOD) of high value hydrocarbon condensate, which is transported to Abqaiq Plants via a 145-mile, 18/24-inch pipeline for further processing. Another by-product is 90 tons of molten sulfur per day. Haradh Gas Plant is the second Saudi Aramco gas plant designed to process non-associated gas. Nonassociated means that the gas is produced directly from gas reservoirs and not as a secondary product of oil production. Scope Haradh Gas Plant The plant is a grass roots facility with inlet facilities, two-gas sweetening trains, three sulfur recovery trains, two acid gas enrichment trains, two condensate stabilizers, two sour water strippers, and four gas-processing trains consisting of gas dehydration, dew point control and sales gas compression. This is in addition to the industrial and support facilities required for the operations of the gas plant. The Gas Plant had five major contractors: Gas Processing Facilities: JGC (Yokohama, Japan) Utilities & Offsites: Technip-Coflexip (Rome, Italy) Industrial Support Facilities: SCE (Saudi Arabia) Permanent Communication: General Dynamics (Virginia, USA) Site Preparation: Al-Khodari & Sons (Saudi Arabia) Haradh Gas Plant Downstream Gas & Condensate Pipelines New 395 miles of sales gas and condensate pipelines ranging in size from 18 inch to 56 inch diameter to distribute 1.5 BSCFD of sales gas and 170,000 BOD of hydrocarbon condensate. Construction contractor: Technip Saudi Arabia Ltd. 77

88 Success: The Hallmark of Haradh Haradh Gas Gathering Manifolds and Transmission Pipelines Three grass roots, non-associated gas-gathering manifolds with corresponding 80-mile transmission pipelines ranging in size from 20-inch to 30-inch diameter to gather and transport 1.6 BSCFD of raw gas from Haradh, Tinat, Waqr, Wudayhi and Ghazal gas fields to the gas plant. Construction contractor: Suedrohrbau Saudi Arabia Ltd. High Voltage Power Supply Expansion of the Saudi Electric Company East power supply system in the Southern Area to support the Haradh Area Crude and Gas Facilities. Main components include 60 miles of 380kV transmission lines between Shedgum and Hawiyah Bulk Supply Power Substations. In addition, 60 miles of 230kV dual transmission lines from Hawiyah Bulk Supply substation to the new 230kV substation at Haradh Gas Plant were also installed. Construction contractors: Hawiyah BSP and Haradh Substation Work: National Contracting Company (NCC), Saudi Arabia Overhead Transmission Lines: Middle East Engineering Development Company (MEEDCo), Saudi Arabia Permanent Communications New communication facilities for Haradh Gas Plant and its core area, to provide two telephone exchanges (2,500 lines), voice alerting and conferencing (150 ports), video conferencing, data networks for 470 users, cable TV for 1000 residential units, paging for 100 users, FM radio services, mobile trunked radios covering all gas fields locations and other associated facilities. Construction contractor: General Dynamics, U.S. Haradh Community A permanent residential community of 1,000 employees with a Boeing 737-capable air strip to support the Haradh Gas Program. Construction contractor: Jouannou & Paraskevaides, Saudi Arabia 78

89 Success: The Hallmark of Haradh Site Preparation for Haradh Gas Plant Site preparation work of approximately 18.5 million square feet was required for the construction of the Haradh Gas Plant, the associated Core Area Complex, the Sulfur Storage and Handling Facilities. Additional temporary construction communications for all the Haradh related projects, four permanent water wells, an on-site road from the existing Batha Road to the gas plant site were constructed. Construction contractor: Al-Khodari & Sons Co., Saudi Arabia Cost Summary Approximate cost of the Haradh Program is $ 2 billion. Safety & Work Force This project has expended 49 million construction work-hours without a lost time work day. The total peak work force was 11,500 personnel from 36 different nationalities. Saudi Aramco records lost workdays cases based on the U.S. Department of Labor, Bureau of Labor Statistics guidelines. Quality The program has a Project Quality Index (PQI) of 98 percent versus a target of 90 percent. PQI is a specific measure of project quality established by Saudi Aramco based on several project functions such as procurement, testing, welding, and other construction functions. The Saudi Aramco Quality Steering Committee publishes the Project Quality Index monthly. Schedule The first gas processing train went on-stream in April Subsequently, three trains became operational in May and June 2003, six months ahead of schedule. The total duration of the project was 29 months against an industry average of 34 months for similar projects. 79

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91 Success: The Hallmark of Haradh Case Study: Saudi Aramco Knowledgeable Points of Contact Isam Alwan Al-Bayat Vice President, Project Management Saudi Aramco Box 1224 Dhahran SAUDI ARABIA P: F: Hatem Dahleh Project Manager, Haradh Project Consolidated Contractors Company W.L.L. P. O. Box Al-Khobar SAUDI ARABIA P: Segundo Fernandez Engineering Superintendent Haradh Gas Plant Department Saudi Aramco Box 8819 Udhailiyah SAUDI ARABIA P: F: Mohamed Nanji Vice President, Far East Foster Wheeler International Corporation 32 Maxwell Road, #02/01 SINGAPORE P: F: Mohammed S. Qureshi Senior Project Engineer Haradh Gas Plant Projects Department Saudi Aramco Box Dhahran SAUDI ARABIA P: F: Salem H. Shaheen Manager, Haradh Gas Plant Projects Department Saudi Aramco Box Dhahran SAUDI ARABIA P: F: Tadao Takahashi Site Project Manager, Haradh Project JGC Corporation 2-3-1, Minato Mirai, Naka-ku Yokohama JAPAN P: Hidenori Yashima Project Manager, Haradh Project JGC Corporation 2-3-1, Minato Miraj, Naka-ku Yokohama JAPAN P:

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113 A Checklist for Complex Projects Initial Design Basis Were project goals and targeted schedules set from the beginning for this phase? Has the layout/plot plan been developed and discussed by all concerned parties? Has the overall design basis/concept been finalized and agreed upon? Front End Engineering Design Ensure the appropriate sized process team, with the proper credentials, at the start. Target and maintain an early process final design. Immediately review all required data from existing facilities, organize the surveys and collect this information. Review permits and approvals, particularly those required from the government and nonclient organizations; it s necessary to track all authorizations that might impact the schedule and need to be planned for. Early Value Engineering and Constructability reviews must be incorporated into front end design information. Establish contracting strategy and review policies to ensure that interfaces are minimized and practical. Mobilization Is it being carried out as soon as possible? Consider an award or even a pre-award if the award is primarily a formality to be completed. Is personnel mobilization enough to have an immediate impact and effective start? Scheduling personnel is critical. Each complex work area needs its own scheduling resource. It is very important that enough resources have been scheduled to enable active scheduling rather than passive progress reporting. Progress reporting is essential, therefore, if not enough resources are scheduled, the proactive element will not occur. This is especially important at the start of a project when the schedule is critical. Similarly, there are certain disciplines and positions that become very critical during the project. Resource levels must be set to meet project needs at such critical times. Examples include welding engineers who review contractor and supplier documentations, inspectors, and drawing review personnel outside of the project team. 103

114 Success: The Hallmark of Haradh Schedule Establish an early overall schedule. Carry out an early review of urgent long-lead items. Prepare a simple network listing key activities and analyze what steps will improve the overall schedule during the front-end engineering design. Ideas include developing a list of long-lead items, either to order placement or to fully evaluate conditioned bids, advance areas of critical engineering that have been reviewed to determine their benefit to the overall schedule. A particular review is normally required regarding the Process Control System (PCS) and Distributed Control System (DCS) and power availability. Set contract milestones that are well-defined, not open to interpretation and are genuinely important events within the project life cycle. Are planning specifications fully developed and defined? Needs to consider: Ability to merge schedules and coordinate individual contractors to work as a team. Prepare coding parameters to allow scheduling networks to be merged. Specifications must be precise to meet all possible project needs. Commissioning Schedule Develop the ideal commissioning schedule right away during front-end engineering design. Make sure that this schedule is well planned to contain enough float between system start-ups to permit flexibility at that time. Engineering As soon as the design is checked and verified, make sure that changes are minimal (no preferential engineering). Make sure that review cycles have been optimized. Use e-review where practical due to improved transmission times. Develop a drawing list and progress measurement system quickly after the contract is awarded. This helps all parties to focus on their end products. If interfaces are complex, arrange the first interface co-ordination meeting among all contractors within three months of engineering, procurement, and construction (EPC) contract awards. 104

115 Success: The Hallmark of Haradh Procurement Schedule long-lead items right away so that they will arrive on time for the project. To avoid lost time in the purchasing cycle, make sure the supplier you choose can meet project deadlines and that delays will be avoided. If there are stipulations about approved suppliers, source country/area requirements, or other restrictions on the procurement process, the approval mechanisms and implications of the requirements must be reviewed and optimized. Construction Site preparation must be defined early to permit a scheduling float ahead of the construction phase. Temporary housing facility preparation needs to have defined dates. Early contract placement with construction contractor(s) must take place well in advance of construction start dates. An effective early start will maximize the construction window. Site communications need to be arranged early, depending on the remoteness of the project. This can be critical to schedule success. Inter-office project links also need to be established soon after contracts are awarded. 105

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117 Project Management Best Practices: A Status Check Special Topic: CII Continuing Education Short Courses Implementation Session Only Learning Objectives Abstract Learn about three CII Best Practices and how they can immediately improve project performance. A self-assessment tool will help evaluate implementation and understanding of these Best Practices. A training activity will demonstrate how CII principles and Best Practices are presented to industry participants. Learn about the variety of CII education materials and delivery options designed to meet virtually any corporate learning and training requirement. Implementing CII Best Practices can improve project performance, profitability, and competitiveness, but is often a struggle that requires change and a different way of performing work processes. Overcoming such barriers cannot be accomplished without well developed and effectively delivered training. The CII Education and Implementation Strategy Committees will demonstrate how CII Best Practices are taught in the workplace. A panel will show how measuring progress through critical self-assessment is an important step in process improvement. Time will be provided to ask questions and discuss the value of education and implementation. Implementation Session Moderator W. Edward Back, Associate Professor Clemson University Ed Back has been an active researcher with CII in the areas of information management, work process modeling and simulation, onsite design evaluation, and various aspects of contract administration. He has the distinction of being selected as both the CII Outstanding Researcher (1999) and the CII Outstanding Instructor (2001). Since 1998, he has conducted over 100 CII training sessions during the last five years, teaching approximately 2,000 industry professionals about CII principles and Best Practices. Honored twice with the Clemson University Award for Faculty Excellence, he holds graduate degrees in civil engineering and architecture from the University of Illinois at Urbana Champaign and a Ph.D. in civil engineering from Clemson University. 107

118 Project Management Best Practices: A Status Check Implementation Session Panelists W. Frank Eskridge, Sr., Director, Construction Industry Cooperative Alliance Clemson University Manuel A. Garcia, Associate Director Construction Industry Institute Donald G. Giles, Manager, Engineering Mon Valley/Clairton U.S. Steel 108

119 Project Management Best Practices: A Status Check Special Topic: CII Continuing Education Short Courses Knowledgeable Points of Contact W. Edward Back Associate Professor Clemson University Department of Engineering 200 Lowry HallClemson, SC P: (864) F: wmeback@clemson.edu W. Frank Eskridge, Sr. Director, Construction Industry Cooperative Alliance Clemson University Box Lowry Hall Clemson, SC P: (864) F: eskridw@ces.clemson.edu Manuel A. Garcia Associate Director Construction Industry Institute 3925 West Braker Lane (R4500) Austin, TX P: (512) F: manuel.garcia@engr.utexas.edu Donald G. Giles Manager, Engineering Mon Valley/Clairton U.S. Steel Irvin Plant MS 145 P. O. Box 878 Dravosburg, PA P: (412) F: dgiles@uss.com 109

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139 What Can CII Do for You? First-Time Attendee Orientation Implementation Session Only Learning Objectives Abstract Learn how CII answered industry s call for a research clearinghouse and a unified vision for improvement. Gain a better understanding of CII and its activities. Learn about the CII efforts in research, implementation, education, benchmarking, globalization, and breakthrough. Listen to member companies discuss the benefits of CII Best Practices implementation. This session is designed for those who want to know more about how CII is organized and how its various efforts to improve the industry are generated and accomplished. A panel of members will give an overview of CII, its mission and vision, and the core processes. The panel will also provide insight on how CII provides unique research, networking, and personnel training opportunities. Implementation Session Moderator Kenneth E. Eickmann Director, Construction Industry Institute Prior to joining CII as Director in September 1998, Ken Eickmann (Lt. Gen., U.S. Air Force, Retired) enjoyed a distinguished and highly decorated 31-year career in the U.S. Air Force. Ken is a Registered Professional Engineer and a Certified Acquisition Professional in acquisition logistics, program management, and systems planning, research, development, and engineering. He is a Senior Lecturer in Civil Engineering at The University of Texas at Austin. In 1999, he was named a Distinguished Graduate of the UT Austin College of Engineering. He holds a bachelor s degree in mechanical engineering from UT Austin, a master s degree in systems engineering from the Air Force Institute of Technology, and is a graduate of the University of Michigan School of Business and the John F. Kennedy School of Government, Harvard University. 129

140 What Can CII Do for You? Implementation Session Panelists Paul V. Campbell, Senior Vice President, Administration & Technology M. A. Mortenson Company C. Jerome Eyink, Senior Manager, BOT Engineering Anheuser-Busch Companies, Inc. Susan M. Steele, Vice President, Industrial Services BE&K Construction Company Lester L. Sturgeon, Vice President, Corporate Project & Facilities Engineering Abbott Laboratories 130

141 What Can CII Do for You? Knowledgeable Points of Contact Paul V. Campbell Senior Vice President, Administration & Technology M. A. Mortenson Company 700 Meadow Lane, North ( ) P. O. Box 710 Minneapolis, MN P: (763) F: Kenneth E. Eickmann Director Construction Industry Institute 3925 West Braker Lane (R4500) Austin, TX P: (512) F: C. Jerome Eyink Senior Manager, BOT Engineering Anheuser-Busch Companies, Inc. One Busch Place 2816 South Third Street, Bldg St. Louis, MO P: (314) F: Lester L. Sturgeon Vice President, Corporate Project & Facilities Engineering Abbott Laboratories Dept. 50W, Bldg. AP-52S 200 Abbott Park Road Abbott Park, IL P: (847) F: Alternate Panelist: Carol P. Arnold Leader, DuPont Engineering University DuPont Engineering 1007 Market Street, B10212 Wilmington, DE P: (302) F: Susan M. Steele Vice President, Industrial Services BE&K Construction Company P. O. Box 2332 Birmingham, AL P: (205) F:

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143 OSHA and the Construction Industry Today Featured Speaker: John L. Henshaw Abstract The Assistant Secretary will discuss the state of the Occupational Safety and Health Administration (OSHA) and the construction industry and initiatives underway to assist the industry in reducing occupational injuries and illnesses on construction jobsites. He will explain OSHA s Partnership, Alliance and VPP cooperative programs and the benefits of each. In addition, he will provide an overview of OSHA activities related to construction. Keynote Speaker John L. Henshaw, Assistant Secretary of Labor, Occupational Safety and Health Administration John Henshaw heads OSHA. Nominated by President George W. Bush, Henshaw was confirmed by the Senate in He has more than 26 years of experience directing environmental, safety, and health programs in the chemical industry. Most recently he served as director of environment, safety, and health for a joint venture between Solutia and FMC Corporation. Henshaw has authored articles on safety and health management as well as chapters in industrial hygiene and management textbooks. He is a graduate of Appalachian State University and holds a master s degree in environmental health administration and industrial health from the University of Michigan. Knowledgeable Point of Contact John L. Henshaw Assistant Secretary of Labor Occupational Safety and Health Administration U.S. Department of Labor 200 Constitution Avenue, N.W., Rm. S2315 Washington, D.C P: (202) F:

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145 Engineering Productivity Measurement System Engineering Productivity Measurements II Project Team Learning Objectives Abstract Understand why an effective productivity measurement system must include more than simply raw productivity. Learn about two computer-based resources that measure the productivity of detailed design engineering: An off-the-shelf model to calculate a productivity index using correlations developed from the project team s database A custom-tailored approach to develop productivity correlations specific to your industry and particular project execution processes. Find out how these resources can improve execution processes. This CII project team provides two approaches to measure the productivity of detailed engineering (by discipline) as a function of what is designed rather than as a function of deliverables such as drawings and specifications. The Implementation Session will focus on understanding what engineering productivity is and how correlating it to physical quantities things that can be seen, touched, and counted provides a framework that allows comparison of engineering productivity on projects with different scopes, execution approaches, and participants. Plenary Session Presenter W. Kent Goddard, Engineering Project Manager Solutia Inc. Kent Goddard has been with Solutia for 13 years in project management, operations supervision, and process engineering at corporate and plant locations. His experience includes leadership roles on various safety, communications, and personnel development committees. Goddard worked in the natural gas processing and transportation industry prior to joining Solutia. His experience in the natural gas industry was centered on project management and capital investment planning. Goddard is a licensed professional engineer and holds a mechanical engineering degree from the University of Missouri at Rolla. 135

146 Engineering Productivity Measurement System Implementation Session Moderator Katy P. Johansson, Engineering Benchmarking Associate, Project Management Division ExxonMobil Research and Engineering Company Katy Johansson works with the ExxonMobil Project Management Technology group in Fairfax, Virginia. The group s work includes developing estimating methods, collecting construction cost data, and analyzing project performance for the corporation s worldwide refining business. Johansson previously worked in the process industries as a consultant to many Fortune 100 companies in the area of capital project information management and work process improvement. She holds bachelor s, master s, and doctoral degrees in chemistry from the University of Rochester. Implementation Session Participants Donald Bounds, Manager, Project Controls/Senior Project Manager (retired) Fru-Con Engineering, Inc. Karl E. Seil, Manager, Project Execution Administration The Shaw Group Kenneth D. Walsh, Associate Professor San Diego State University Paul N. Woldy, Staff Engineer ChevronTexaco Corporation 136

147 Engineering Productivity Measurement System Engineering Productivity Measurements II Project Team Executive Summary Improving the productivity of detailed design engineering is a critical step in improving the overall effectiveness of capital projects. To improve productivity, there must be a good system to measure and track productivity, so that the impact of improvement efforts can be judged. This research provides two effective approaches to measure and track engineering productivity. Costs associated with a typical heavy industrial major capital construction project can be broken into three general categories with corresponding general percentages: Cost of materials Cost of construction Cost of engineering 45 percent or more 35 percent or more up to 20 percent. Although engineering may only account for up to 20 percent of total project costs, the output of the engineering team has direct bearing on the other 80 percent of project costs. Also, engineering generally sets the pace for compliance with project schedule requirements. For these reasons, it is important to be able to effectively measure and improve engineering productivity. These improvements will benefit both owners and contractors. CII recognized there were no consistent standards used throughout industry to measure engineering productivity. The Engineering Productivity Measurements II Project Team (PT 192) was commissioned as follow-on to the Engineering Productivity Measurements Research Team (RT 156). The objective for PT 192 was to develop a standardized productivity measurement system. As background: RT 156 advanced the concept of measuring the productivity of detailed engineering as a function of the number of hours required to design physical components (e.g., pipe, concrete, and cable that will be installed in the field), as opposed to the traditional method of using design hours per direct engineering output (e.g., the number and types of drawings and specifications). RT 156 conducted a detailed evaluation of the piping design process and found good correlation of design hours with the total length of pipe designed and the number of equipment pieces in the piping systems (which were seen as an indication of project complexity). Additionally, RT 156 developed a conceptual model in which engineering productivity would consist of a raw productivity (hours per design quantities), which could be adjusted to account for project complexity, the quality of input to detailed design, and the quality of the design output. Using RT 156 s results as proof of the concept, PT 192 was formed in 2002 to extend the concept for the piping discipline to other engineering disciplines and by further defining input/ output adjustments. PT 192 conducted a series of discipline workshops, reviewed a physicalcomponent-based engineering productivity system in use at Dow Chemical Company, and reviewed the results of efforts by the CII Benchmarking and Metrics Committee to establish 137

148 Engineering Productivity Measurement System engineering productivity metrics. These processes enabled PT 192 to develop a data collection instrument to gather project descriptive data (80 questions), the quantities of 166 different design components across 7 disciplines (piping, civil/structural, mechanical, electrical, instrumentation/ controls, process, and architectural), discipline hours used to complete the design, and projectspecific input/output factors that could potentially impact productivity (49 questions). PT 192 collected data for 118 projects from 14 different companies with a total installed cost of approximately $15 billion. Statistical analysis was used to determine which design components had the strongest correlations to design hours. Discipline experts were consulted to further narrow and finalize the design components to use for each discipline. Statistics experts then developed coefficients and equations for each discipline to calculate basis hours, a term coined by the team. For example, the basis hours for the civil structural discipline were determined to be: C/S Basis Hours = ( sq. ft. of building area) + (0.492 cubic yards of structural concrete) + (6.39 tons of steel) + (3.53 number of deep foundations) The team went on to define a productivity index for each discipline as the number discipline design hours actually used on a given project divided by the calculated basis hours: Productivity Index = actual design hours / basis hours In application, an organization needs to gather data on a set of projects to establish a baseline productivity index for each discipline. Then data on current and future projects should be gathered to look for trends. If changes to internal work processes have a positive affect on productivity, they will show up as a downward trend in the productivity index over time. PT 192 provides two different methods to measure and trend engineering productivity: The Off-the-Shelf approach calculates basis hours using equations developed from the PT 192 data set, as described above. This approach can be used immediately with minimal startup costs. The Custom-Tailored approach applies the same methodology as was used by the PT 192 project team (as described in the PT 192 Implementation Resource and Research Summary) to develop organization-specific equations for calculating basis hours. While this approach requires more effort that the Off-the-Shelf approach and requires access to statistical expertise, it should also provide a more accurate measurement system that is more responsive to improvements made to internal work processes. Two cautions: This type of measurement system should be used to track trends between groups of projects. It is not appropriate to draw conclusions about individual projects because of the significant variability between individual projects. 138

149 Engineering Productivity Measurement System This system should be used as one of a family of measures to track engineering productivity. Input quality (e.g., CII s Project Definition Rating Index), output quality, and other project-specific factors must be considered when evaluating the relative productivity of a particular project. The research and tools provided by PT 192 have the potential for significant impact on the way companies measure, track, and improve the productivity of detailed design engineering. This in turn may lead to improved cost effectiveness of implementing capital projects within individual organizations. Benchmarking and additional research could extend these benefits across the industry if the tools are used broadly by CII organizations. Sources of Additional Information Related to PT 192 CII Research Projects and Products Relating to Engineering Productivity and/or Performance Year Research/Project Team Products 1986 Task Force 84-8, Design Evaluation of Design Effectiveness (SD-16) Defining and Evaluating Input Variables Impacting Design Effectiveness: Research Phase I (SD-19) 1989 Task Force 84-8, Design Cost Effectiveness of Computerization in Design and Construction (SD-50) 1994 Total Quality Management Implementing TQM in Engineering and Task Force Construction (SP 31-1) Research Team 112 2% Engineering Can It Work for You? (RS 112-1) 1998 A Framework and Practices for Cost-Effective Engineering in Capital Projects in the A/E/C Industry (RR112-11) 2000 Research Team 152 Three-Dimensional Computer Models and Fully Automated Project Processes for the Management of Construction (RR152-11) 2001 Research Team 156 Engineering Productivity Measurement (RR156-11) 139

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151 Engineering Productivity Measurement System Engineering Productivity Measurements II Project Team Knowledgeable Points of Contact Donald Bounds Manager, Project Controls/Senior Project Manager (retired) Fru-Con Engineering, Inc N. Jacob Lane Dix, IL P: (618) David S. Edmondson Director of Engineering Technip USA Corporation 1990 Post Oak Blvd, Suite 200 Houston, TX P: (713) F: Michael H. Garrett Engineering Manager, Electrical and Control Systems Washington Group International Industrial/Process Business Unit 500 Corporate Parkway Birmingham, AL P: (205) F: W. Kent Goddard Engineering Project Manager Solutia Inc. Mail Zone 4-S 575 Maryville Centre Drive St. Louis, MO P: (314) F: Charles M. Green Engineering Specialist Aramco Services Company P. O. Box MS-1089 Houston, TX P: (713) F: charlie.green@aramcoservices.com William R. Harris Manager Electrical Systems General Motors Corporation Worldwide Facilities Group - Capital Projects Mail Code Technology Drive Troy, MI P: 248/ F: william.r.harris@gm.com Alan G. Helton Director of Discipline Engineering ALSTOM Power Inc Centerpoint Blvd. Knoxville, TN P: (865) F: alan.helton@power.alstom.com James C. Hershauer Professor of Management Ford Dealership Management Fellow Arizona State University W. P. Carey School of Business Tempe, AZ P: (480) F: james.hershauer@asu.edu 141

152 Engineering Productivity Measurement System Ronald W. Hicks Vice President Black & Veatch 3550 Green Court Ann Arbor, MI P: (734) F: Burrell L. Higdon Engineering Manager Day & Zimmermann International, Inc. 125 The Parkway Greenville, SC P: (864) F: Stephen C. Horton Chief Engineer BE&K 2450 Perimeter Park Dr. Suite 100 Morrisville, NC P: (919) F: Robert E. Houghtaling Engineering Manager DuPont Engineering Brandywine Bldg Market Street Wilmington, DE P: (302) F: Katy P. Johansson Engineering Benchmarking Associate Project Management Division ExxonMobil Research and Engineering Company 3225 Gallows Road, Rm. 4A 0416 Fairfax, VA P: (703) F: Frank McMahon Vice President Engineering Hilti, Inc S. 122nd East Ave. Tulsa, OK P: (918) F: Gary P. Minnick Business Unit Manager Lockwood Greene 1000 Des Peres Roard, Ste.100 St. Louis, MO P: (314) F: Steven Page Senior Project Engineer Chevron Phillips Chemical Co Jefferson Pasadena, TX P: (713) F:

153 Engineering Productivity Measurement System Gregory W. Robertson Procurement Manager Special Projects Black & Veatch Lamar Avenue Overland Park, KS P: (913) F: Karl E. Seil Manager, Project Execution Administration The Shaw Group at Stone & Webster, Inc Enclave Parkway Houston, TX P: (281) F: Ganesh Shenbagaraman Research Associate Arizona State University W. P. Carey College of Business Tempe, AZ P: (480) F: John G. Wacker Research Professor Arizona State University W. P. Carey School of Business Tempe, AZ P: (480) F: Kenneth D. Walsh Associate Professor San Diego State University Department of Civil & Environmental Engineering 5500 Campanile Drive San Diego, CA P: (619) F: Michael Wick Manager Architectural Systems General Motors Corporation Troy Tech Park Building A 1996 Technology Drive MC: Troy, MI P: (248) F: michael.wick@gm.com Paul N. Woldy Staff Engineer ChevronTexaco Corporation BAX 324 P. O. Box 430 Bellaire, TX P: (713) F: pwoldy@chevrontexaco.com 143

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175 Owner Influence on Contractor Safety Performance Case Study: General Motors Learning Objectives Abstract Hear about a culture that embraces safe work practices across facilities. Learn how the organization focuses on safety performance with contractors and suppliers. See how a common process was developed across multiple business units. Identify tools, roles, responsibilities, and measures. General Motors focused on specific actions to demonstrate commitment to safety, created a process of continuous improvement, and benchmarked to create a safety culture. The overwhelming success of their efforts led them to increase their focus to include their contractors and outside suppliers. A common process was established using CII s Zero Accidents Best Practices. The implementation session will present an overview of how the process embodies CII tools to improve safety performance without taking responsibility for safety away from the contractor. Plenary Session Presenter August Olivier, Director, Capital Projects, Worldwide Facilities Group General Motors Corporation August Olivier is responsible for the construction of major buildings and infrastructure for the corporation, including all manufacturing and nonmanufacturing facilities in North America. He has over 30 years of experience in the facilities business. Prior to his current assignment, he was responsible for facility management for GM s non-manufacturing facilities and for maintenance operations at its U.S. assembly plants. Olivier holds a bachelor of science degree from General Motors Institute and a master s from Stevens Institute of Technology in New Jersey. 165

176 Owner Influence on Contractor Safety Performance Implementation Session Moderator August Olivier, Director, Capital Projects, Worldwide Facilities Group General Motors Corporation Implementation Session Participants Bruce Brandenburg, Construction Group Manager, Worldwide Facilities Group General Motors Corporation Stephen B. Clabaugh, Assistant Vice President, Safety & Health Walbridge Aldinger Company Michael W. Mayra, Construction Group Manager, Worldwide Facilities Group General Motors Coporation 166

177 Owner Influence on Contractor Safety Performance Case Study: General Motors Executive Summary General Motors (GM) Corporation s presentation at this year s CII Annual Conference focuses on the role that owners have on their contractor s safety performance. Although GM has a long history of promoting the importance of safety in the workplace, it only recently placed emphasis on attempting to influence contractor safety performance. The company s commitment to safety is ingrained in its own workforce, and the result is a safety culture or inherent behaviors exhibited by the men and women within the company. This same positive attitude towards safety clearly was not evident in contractor employees across the company. In fact, GM began noticing a large disparity in the safety performance of its own employees versus those of contractors employed on GM sites. The corporation thus began tracking construction safety performance indicators in 1997, specifically Recordable Incident Rates and Lost Workday Case Incident Rates, in an attempt to measure the performance of its contractors. Although the data indicated that GM was below the industry average in both categories, the company s goal was to achieve results more in line with those of CII member organizations. Further research indicated that contractors across GM project sites lacked a clear set of expectations with respect to safety. The feedback received from GM project managers was that they were uncertain about the level of involvement they should take in influencing a contractor s safety efforts. The company concluded that an owner needed to be established internally within the organization in order to communicate effectively the safety requirements that GM was intending to impose on its contractors. To that end, the Worldwide Facilities Group was designated to champion construction safety within the organization and was given the task to lead the development of a common corporate process. The initial step taken in the development of this common process was the formation of a cross-functional team within GM whose members all had a stake in the ultimate success of this effort. The team began the effort by concurring on the basic tenets around which to build the process. The team met on a bi-monthly basis for six months in order to complete the assignment and obtain the buy-in necessary from the senior leadership of the corporation. The result was a six-step process known as the Construction Safety Process (CSP). In addition to the input of project managers across corporate sites, CII research and data played a major role in the overall development of the document that resulted. Much of the early research done by the cross-functional team utilized CII publications to formulate GM s initial direction. The final process clearly illustrates how CII s nine practices from its Making Zero Accidents a Reality research are an integral part of GM s Construction Safety Process. The CSP now has been successfully rolled out across the corporation and has the full support of GM management. GM has mandated that the Construction Safety Process be used as a tool by company project managers on all new projects. Thus far, positive feedback has been received by both GM employees as well as contractors who have used the CSP document. 167

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179 Owner Influence on Contractor Safety Performance Case Study: General Motors Knowledgeable Points of Contact Bruce Brandenburg Construction Group Manager General Motors Corporation Worldwide Facilities Group Capital Projects Mail Code Troy, MI P: (248) F: Stephen B. Clabaugh Assistant Vice President, Safety & Health Walbridge Aldinger Company 613 Abbott Street Detroit, MI P: (313) F: Michael W. Mayra (Mike) Construction Group Manager General Motors Corporation Worldwide Facilities Group Capital Projects Mail Code Troy, MI P: (248) F: August Olivier Director, Capital Projects General Motors Corporation GM Worldwide Facilities Group Troy Tech Park Bldg. A Mail Code Troy, MI P: (248) F: august.olivier@gm.com 169

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199 Small Projects, Homeland Security, and Beyond Benchmarking & Metrics Committee Learning Objectives Abstract Get the latest updates on customizable online project reporting tools. Learn how Account Managers can assist you with the implementation of benchmarking. Learn how to benchmark your small projects. Find out about the CII/NIST Best Practices for Project Security and the development of the Security Rating Index. Exciting new initiatives are taking place in the CII Benchmarking program, including userfriendly tools from data collection and reporting to improved customer service. Other activities include the development of a Small Projects Benchmarking questionnaire and a Security Rating Index that will assist companies in assessing how well security practices have been implemented during the planning and execution of their projects. Benchmarking will hold two implementation sessions: The Small Projects Benchmarking session will focus on the details of this new initiative, including its development, milestones, and pilot data results. The differences in benchmarking large and small projects will be discussed as will the issues for benchmarking small projects. The Best Practices for Project Security session will discuss the study goals and objectives and tasks accomplished during workshops to date. The Security Rating Index for industrial projects will be presented and its use will be discussed. Plans for follow-on studies to develop indices for other industry groups will be outlined. Plans for benchmarking the Security Rating Index and the associated impacts on cost, schedule, and safety also will be presented. Plenary Session Presenter Mark T. Owens Director of Global Facilities Delivery, Eli Lilly and Company Mark Owens is responsible for capital project services, including capital planning, front-end loading, estimating, project control, design specialists, and commissioning and qualification. At Lilly since 1972, he had several engineering assignments before becoming operations coordinator of the antibiotic fermentation pilot plant. In 1989, he moved to Ireland to serve as general manager at one of Lilly s manufacturing operations. He returned to Indiana in 1994, when he was named director of corporate health, safety, and environmental affairs. Owens earned a bachelor s degree in chemical engineering from Rose-Hulman Institute of Technology and an MBA from Indiana University. 189

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201 Small Projects, Homeland Security, and Beyond Knowledgeable Points of Contact Joel R. Barnett Senior Estimator OG&C Fluor Daniel One Fluor Daniel Drive (B2 608D) Sugar Land, TX P: (281) F: Salwa M. Beheiry Graduate Research Assistant The University of the Texas at Austin c/o Construction Industry Institute 3925 West Braker Lane (R4500) Austin, TX P: (512) F: Gertraud F. Breitkopf Senior Program Manager U.S. General Services Administration 1800 F Street, N.W., Room 3340 Washington, D.C P: (202) F: gertraud.breitkopf@gsa.gov Robert E. Chapman Economist, Office of Applied Economics National Institute of Standards & Technology Building 226, Stop Bureau Drive Gaithersburg, MD P: (301) F: robert.chapman@nist.gov Gregory D. Clum Manager, BVCI Labor Relations Black & Veatch Corporation Lamar Overland Park, KS P: (913) F: clumgd@bv.com William G. Cooley, Sr. Capital Effectiveness Engineer U.S. Steel Gary Works One North Broadway, MS-188 Gary, IN P: (219) F: wgcooley@uss.com Deborah L. DeGezelle Systems Analyst Construction Industry Institute 3925 West Braker Lane (R4500) Austin, TX P: (512) F: (512) sthomas@mail.utexas.edu Donald A. Gaddy Construction Safety & Health Manager, Engineering & Construction Services Southern Company Generation & Energy Marketing P. O. Box 2625 Birmingham, AL P: (205) F: dagaddy@southernco.com James B. Gibson Vice President, Projects ALSTOM Power Inc Centerpoint Blvd. Knoxville, TN P: (865) F: james.b.gibson@power.alstom.com Charles M. Green Engineering Specialist Aramco Services Company P. O. Box MS-1089 Houston, TX P: (713) F: charlie.green@aramcoservices.com 191

202 Small Projects, Homeland Security, and Beyond Carl Gretzinger Facilities Project Planner, Project Planning Department General Motors Corporation GMC-WFC-MC Technology Drive Troy, MI P: (248) F: Luis A. Gutierrez Global Process Owner SAP Capital The Procter & Gamble Company 8256 Union Centre Blvd. West Chester, OH P: (513) F: Robert A. Herrington Quality Manager, Central Region Jacobs P. O. Box Houston, TX P: (832) F: David G. Hile Operations Manager Fru-Con Construction Corporation 2077 Bayard Ave. Kansas City, KS P: (913) F: Howard Kass Program Manager Facilities Engineer National Aeronautics & Space Administration NASA HQ/JX 300 E Street, S.W. Washington, DC P: (202) F: hkass@hq.nasa.gov InHo Kim Graduate Research Assistant The University of the Texas at Austin c/o Construction Industry Institute 3925 West Braker Lane (R4500) Austin, TX P: (512) F: inho@mail.utexas.edu John E. Kurth Senior Vice President, Operations Aker Kværner 7909 Parkwood Circle Drive Houston, TX P: (713) F: john.kurth@akerkvaerner.com Grant G. Landry Manager of Engineering & Projects CDI Solutions, Inc Westfork Drive, Suite 100 Baton Rouge, LA P: (225) F: grant.landry@cdicorp.com Sang-Hoon Lee Post Doctorate Research Fellow Construction Industry Institute 3925 West Braker Lane (R4500) Austin, TX P: (512) F: shoonlee@mail.utexas.edu 192

203 Small Projects, Homeland Security, and Beyond Lilin Liang Graduate Research Assistant The University of the Texas at Austin c/o Construction Industry Institute 3925 West Braker Lane (R4500) Austin, TX P: (512) F: Philip R. Moncrief Vice President & General Manager Technip Coflexip 1990 Post Oak Blvd., Suite 200 Houston, TX P: (713) F: Wladimir Norko Senior Engineer, Technical Policy Branch U.S. Army Corps of Engineers ATTN: CECW-ETC 441 G. Street, N.W. Washington, DC P: (202) F: Mark T. Owens Director, Global Facilities Delivery Eli Lilly and Company Lilly Corporate Center Indianapolis, IN P: (317) F: David M. Perkins Project Manager Rohm and Haas Company 6519 La Porte Frwy. Deer Park, TX P: (281) F: Timothy P. Rigsby Director, Construction Management Services Johnson Controls, Inc. 507 E. Michigan St. (M-7) Milwaukee, WI P: (414) F: Derek C. Ross Associate Director, Construction Management Smithsonian Institution Victor Bldg., Suite MRC 908 P. O. Box Washington, DC P: (202) F: / 0883 rossde@opp.si.edu Danny Scott Project Engineer BE&K Engineering Company 2000 International Park Drive Birmingham, AL P: (205) F: scottd@bek.com David L. Stickel Process Owner Global Project Management The Procter & Gamble Company Beckett Ridge Technical Center 8256 Union Centre Blvd., LP-311 Cincinnati, OH P: (513) F: stickel.dl@pg.com Frank K. Suhan Project Management Consultant Johnson Controls, Inc. 507 E. Michigan Streeet, M-7 Milwaukee, WI P: (414) F: frank.k.suhan@jci.com 193

204 Small Projects, Homeland Security, and Beyond John Tato II Director, Project Evaluation & Analysis Division U.S. Department of State OBO/PD/PEA Washington, DC P: (703) F: Stephen R. Thomas Associate Director Construction Industry Institute 3925 West Braker Lane (R4500) Austin, TX P: (512) F: (512) Stephen D. Warnock Director of Operations Washington Group International, Inc W. 3rd Street Cleveland, OH P: (216) F:

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211 Small Projects Benchmarking Benchmarking & Metrics Small Projects Team Implementation Session Only Learning Objectives Abstract Learn how to benchmark small projects. Discuss the newly developed questionnaire for benchmarking. Discuss recommended practices for managing small projects. Small projects, including maintenance and repair activities, have become a significant part of the work of many member companies. These projects are typically managed as a program and use different control systems than larger projects. Practice use is very different for these projects as well and special metrics are required to effectively benchmark smaller projects. Last year the Benchmarking & Metrics Committee established a Small Projects team to study the benchmarking needs of these projects and to develop the questionnaire and metrics to support small project benchmarking. This team is completing its work and will report their finding during this implementation session. Implementation Session Moderator Grant G. Landry, Manager of Engineering and Projects CDI Solutions, Inc. Grant Landry has more than 20 years of experience in the refinery and petrochemical industries. His responsibilities have included project management, mechanical design, onsite management, estimating, material coordination, and economic analysis on both new construction and retrofit projects. At CII, Landry serves on the Benchmarking and Metrics Committee and as chair of the Benchmarking Small Projects Questionnaire Development Subcommittee. He earned a bachelor s degree in mechanical engineering from Louisiana State University. Implementation Session Participants Glen A. Blanchone, Manager, Engineering Information GlaxoSmithKline Gertraud F. Breitkopf, Senior Program Manager U.S. General Services Administration Carl Gretzinger, Facilities Project Planner, Project Planning Department General Motors Corporation John M. Mellin, Manager, Business Planning & Performance GlaxoSmithKline Frank K. Suhan, Project Management Consultant Johnson Controls, Inc. Stephen R. Thomas, Associate Director for Benchmarking & Metrics Construction Industry Institute 201

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213 Small Projects Benchmarking Benchmarking & Metrics Small Projects Team Knowledgeable Points of Contact Ron Beechey Scheduling Specialist Dofasco, Inc Burlington Street, East Hamilton, ON L8N 3J5 CANADA P: (905) F: Glen A. Blanchone Manager, Engineering Information GlaxoSmithKline Five Moore Drive Research Triangle Park, NC P: (919) F: Gertraud F. Breitkopf Senior Program Manager U.S. General Services Administration 1800 F Street, N.W., Room 3340 Washington, D.C P: (202) F: gertraud.breitkopf@gsa.gov Carl Gretzinger Facilities Project Planner, Project Planning Department General Motors Corporation GMC-WFC-MC Technology Drive Troy, MI P: (248) F: carl.gretzinger@gm.com Grant G. Landry Manager of Engineering & Projects CDI Solutions, Inc Westfork Drive, Suite 100 Baton Rouge, LA P: (225) F: grant.landry@cdicorp.com John M. Mellin Manager, Business Planning & Performance GlaxoSmithKline P. O. Box Research Triangle Park, NC P: (919) F: jmm25507@gsk.com Frank K. Suhan Project Management Consultant Johnson Controls, Inc. 507 E. Michigan Streeet, M-7 Milwaukee, WI P: (414) F: frank.k.suhan@jci.com Stephen R. Thomas Associate Director Construction Industry Institute 3925 West Braker Lane (R4500) Austin, TX P: (512) F: (512) sthomas@mail.utexas.edu 203

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223 Best Practices for Project Security CII/NIST Best Practices for Project Security Team Implementation Session Only Learning Objectives Abstract Learn how to improve the security of your projects. Discuss the evolving best practices for project security. Learn how to quantify the impacts of these practices on project outcomes. Learn how to benchmark these practices. The events of 9/11 continue to influence the nation as we modify our systems to prevent or minimize the occurrence of such events in the future. Last year NIST approached CII as an industry principal national forum to conduct a study to develop best practices for project security and a methodology for assessing the impacts of implementation on project outcomes. CII s approach to this critical task has been to leverage its research methodology and knowledge base to introduce security concepts into widely accepted CII best practices currently in use. Integrated throughout CII s best practices, these procedures collectively define a process for addressing security for the capital facility delivery process. Using the program developed by CII, these procedures can be benchmarked as any other practice to assess the level of implementation and impact. Implementation Session Moderator Stephen R. Thomas, Associate Director for Benchmarking & Metrics Construction Industry Institute In addition to his work with CII, Steve Thomas teaches in the Construction Engineering and Project Management program at The University of Texas at Austin. Thomas enjoyed a distinguished career with the U.S. Army Corps of Engineers from with numerous assignments throughout the United States, Korea, Germany, and the Middle East. He has extensive experience with large multinational projects and research experience in benchmarking project performance and best practices. He earned a bachelor s degree at the United States Military Academy, West Point, NY, and master and doctoral degrees in civil engineering at The University of Texas at Austin. 213

224 Best Practices for Project Security Implementation Session Participants John T. Brady, Security Advisor, Legal Department ConocoPhillips Robert E. Chapman, Economist, Office of Applied Economics National Institute of Standards & Technology C. Hilton Dunn, Jr., BE&K (retired); Consultant CHD Consulting LLC G. Edward Gibson, Jr., Professor, Department of Civil Engineering The University of Texas at Austin Michael C. Hewitt, Manager, Business Engineering, Operations & Maintenance DuPont Facilities Services & Real Estate Charles I. McGinnis, Principal, Engineering Management Consultant Charles I. McGinnis, P.E. James B. Porter, Jr., Vice President, Engineering & Operations DuPont Engineering Michael G. Spight, Central Region Manager, Infrastructure Security Sector TRC Companies, Inc. Jay W. Toadvine, Director, Operations Fluor Government Group 214

225 Best Practices for Project Security CII/NIST Best Practices for Project Security Team Implementation Session Only Knowledgeable Points of Contact Lansford C. Bell S. E. Liles Distinguished Professor Clemson University Department of Civil Engineering 202A Lowry Hall P. O. Box Clemson, SC P: (864) F: John T. Brady Security Advisor, Legal Department ConocoPhillips 600 North Dairy Ashford Houston, TX P: (281) F: Robert E. Chapman Economist, Office of Applied Economics National Institute of Standards & Technology Building 226, Stop Bureau Drive Gaithersburg, MD P: (301) F: C. Hilton Dunn, Jr. Consultant, CHD Consulting LLC 313 Golf Drive Birmingham, AL P: (205) G. Edward Gibson, Jr. Professor, Department of Civil Engineering The University of Texas at Austin ECJ 5.2 (C1752) Austin, TX P: (512) F: Michael C. Hewitt Manager, Business Engineering, Operations & Maintenance DuPont Facilities Services & Real Estate DuPont Building, Room Mark Street Wilmington, DE P: (302) F: Sang-Hoon Lee Post Doctorate Research Fellow Construction Industry Institute 3925 West Braker Lane (R4500) Austin, TX P: (512) F: (512) Walter J. Lisiewski, Jr. Vice President JE Merit Constructors, Inc Rogerdale Road Houston, TX P: (832) F: Benjamin E. Matthews Graduate Research Assistant The University of Texas at Austin 2212 Rio Grande, Apt. C305 Austin, TX P: (512) Charles I. McGinnis Principal, Engineering Management Consultant Charles I. McGinnis, P.E. 50 Gooseneck Lane Charlottesville, VA P: (434) F:

226 Best Practices for Project Security Charles A. Poer Business Unit Manager, Plant Civil Services Zachry Construction Corporation Richmond Ave., Suite 330 Houston, TX P: (832) F: 832/ James B. Porter, Jr. Vice President, Engineering & Operations DuPont Engineering Brandywine Building Market Street Wilmington, DE P: (302) F: Michael G. Spight Central Region Manager, Infrastructure Security Sector TRC Companies, Inc Genessee Street, Suite 416 Kansas City, MO P: (816) , Ext. 8 mike.spight@trcsolutions.com Gary L. Staton Consultant E. I. dupont de Nemours & Co., Inc. Brandywine Market Street Wilmington, DE P: (302) F: gary.l.staton@usa.dupont.com David Syphard Vice President Jacobs Facilities Inc Rogerdale Road Houston, TX P: (832) F: david.syphard@jacobs.com Stephen R. Thomas Associate Director Construction Industry Institute 3925 West Braker Lane (R4500) Austin, TX P: (512) F: (512) sthomas@mail.utexas.edu Jay W. Toadvine Director, Operations Fluor Government Group 1101 Wilson Blvd., Suite 1900 Arlington, VA P: (703) F: jay.toadvine@fluor.com Richard L. Tucker Director, Center for Construction Industry Studies The University of Texas at Austin Civil Engineering Construction Management (C1752) ECJ Austin, TX P: (512) F: rltucker@mail.utexas.edu Jonathan R. Sylvie Graduate Research Assistant The University of Texas at Austin 6604 Nusser Lane Austin, TX P: (512) F: jon_sylvie@hotmail.com 216

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235 Risk Assessment for International Projects Risk Analysis for International Projects Project Team Learning Objectives Abstract Learn about a structured methodology of assessing risk for international projects across the entire project life cycle. Understand the basis of the development of four major areas of risk with 82 specific risk assessment considerations. Understand the flexibility of the risk assessment process to assess and rank order projectspecific risks. Discover how project teams can apply the product developed by this CII project team. The CII research by this project team has resulted in a structured methodology that allows a risk assessment method validated by over 110 owner/contractor/investor companies with a cumulative project value in excess of $25 billion. The research has yielded a product that allows project teams to differentiate critical project specific risk issues across the project s entire life cycle. This newly developed International Project Risk Assessment (IPRA) evaluation methodology will be unveiled. An implementation panel will provide details on how the IPRA tool was developed and an example of how to use the tool. Plenary Session Presenter Ellsworth F. Vines, Senior Vice President, Strategic and Corporate Planning Dick Corporation Ell Vines has more than 37 years of experience in the engineering, management, and construction of large and small lump sum, turnkey projects. He has successfully led start-up and mature operations in both domestic and international environments. His work has included all phases of the management of projects and operations for his firm s industrial and highway groups. He has worked in the minerals processing, steel, nonferrous, transportation, water-wastewater, and hospitality sectors, and recently led a team that developed financing for a major steel facility in Eastern Europe. Vines holds both bachelors and master s degrees from Clarkson University in Potsdam, New York. 225

236 Risk Assessment for International Projects Implementation Session Moderator Yamile C. Jackson, President Ringstones Consulting International, Inc. Yamile Jackson, a native of Bogotá, Colombia, is the Project Management Institute representative to the CII project team on Risk Analysis for International Projects. She has over 12 years of domestic and international experience in the field of project management and project planning and control. Formerly a project engineer for Kværner and a project controls engineer for Fluor, Jackson is an adjunct professor of Engineering Management at the University of Houston and a guest professor at universities in the U.S. and Latin America. She earned bachelor s, master s and doctoral degrees from the University of Houston and a master s from Clemson University. Implementation Session Participants Bretislav Borak, Branch Chief Cost Engineering, Embassy Program U.S. Department of State G. Edward Gibson, Jr., Professor, Department of Civil Engineering The University of Texas at Austin Libby M. Lace, Manager of Projects, Calgary Operations Jacobs Engineering Group, Inc. Egon J. Larsen, Global Construction Manager Air Products and Chemicals, Inc. Ellsworth F. Vines, Senior Vice President, Strategic and Corporate Planning Dick Corporation 226

237 Risk Assessment for International Projects Risk Analysis for International Projects Project Team Executive Summary Assessing and managing risk is a complex and critical task for international construction projects, yet few evaluation tools and guidelines exist to assist owners and contractors with capital facility planning and construction. An international project for this research study is defined as a project performed by North American investors, owners, and/or contractors that is located outside of North America. When undertaking international capital projects, owners have had limited resources to assess a diverse set of political, geographic, economic, environmental, regulatory, and cultural risk factors. Likewise, contractors must consider a similar set of risk factors in determining whether to undertake such projects, and how to price, schedule, and successfully deliver the work if they do. Additionally, in many organizations, a disconnect exists between project practitioners and decision makers concerning the real risk and rewards of the venture. Based on the need for a process to enhance the assessment and management of international project risks, a structured risk identification and assessment process has been developed through extensive research and validation. The International Project Risk Assessment (IPRA) was developed by the CII Risk Analysis for International Projects Project Team. The IPRA identifies and describes 82 issues that are the critical elements related to an international capital project and allows a project team to focus on risk factors of potential concern. The IPRA is intended to evaluate the risk exposure and provide an indication of potential impact of risk during the full project life cycle. In effect, it can serve as an aide memoir for the project participants. While risk control and mitigation were not part of the scope of this research, the IPRA will indicate which components of the project should be considered for risk mitigation as part of an overall risk management strategy. The value of identifying and managing project risks rather than each participant giving exclusive consideration to only their risks are to: Allow for early identification of hazards and opportunities. Communicate risks between project participants. Identify and manage uncertainty and consider worse-case scenarios. Establish ownership of risks and risk mitigation actions. Enhance risk-based decision-making. The IPRA analysis is focused on issues that are unique to ventures in an international jurisdiction. Other project management tasks such as scope definition, design management, team processes, relationships, project controls, and others must also be adequately performed in order for the project to be successful. 227

238 Risk Assessment for International Projects Methodology The CII project team performed an extensive literature review on the topics of risk identification, assessment, and management, as well as issues related to international construction. It also used information gleaned from CII s globalization forums, previous research, and industry practices for assessing international project risk. Furthermore, the team developed and used a structured interview to evaluate the approaches organizations used to manage the risks incurred on international projects. Based on the collective input from the literature review, structured interviews, and experiences of the project team and the Globalization Committee, the team developed the International Project Risk Assessment (IPRA) tool. During its development, the IPRA was critiqued by owner and contractor organizations in addition to other industry experts and their comments were incorporated to further enhance the product. A series of workshops was held where industry experts assisted in determining a rank-order of individual risk elements using completed projects. Validation of the usefulness and effectiveness of the IPRA tool has been conducted on both completed and ongoing projects. Project data from over 20 countries on six continents have been used to develop and validate the IPRA, and over 120 industry organizations have participated. CII Implementation Resource 181-2, International Project Risk Assessment, has been completed to assist IPRA users. Summary The IPRA tool provides a structured methodology for project teams to identify and assess risk issues that are international project specific. Validated on completed and ongoing projects representing over $3.2 billion in TIC, it has proven its effectiveness in identification of risk issues specific to international projects. References Implementation Resource 181-2, International Project Risk Assessment, July

239 Risk Assessment for International Projects Risk Analysis for International Projects Project Team Knowledgeable Points of Contact Bretislav Borak Branch Chief Cost Engineering Embassy Program U.S. Department of State 8115 Westchester Drive Vienna, VA P: (703) F: Michael Dinneen Contracts Manager Granite Construction Inc. 585 West Beach Street Watsonville, CA P: (831) F: G. Edward Gibson, Jr. Professor, Department of Civil Engineering The University of Texas at Austin ECJ 5.2 (C1752) Austin, TX P: (512) F: Yamile C. Jackson President Ringstones Consulting International, Inc. P. O. Box Houston, TX P: (713) F: Douglas Kaiser Vice President, Process Management Exxcel Project Management 250 East Broad Street, Suite 1150 Columbus, OH P: (614) F: 614/ Libby M. Lace Manager of Projects, Calgary Operations Jacobs Engineering Group, Inc. 400S, 8500 Macleod Trail South P. O. Box 5244, Station A Calgary, Alberta T2H 2N7 CANADA P: (403) F: libby.lace@jacobs.com Egon J. Larsen Global Construction Manager Air Products and Chemicals, Inc Hamilton Blvd. Allentown, PA P: (610) F: larsenej@apci.com Matthew Nixon Project Services Director ConocoPhillips 1000 S. Pine, Room ST Ponca City, OK P: (580) F: manixon@ppco.com Corrie E. Reid Budget & Accountability Analyst Aramco Services Company 9009 West Loop South, MS-1093 Houston, TX P: (713) F: corrie.reid@aramcoservices.com 229

240 Risk Assessment for International Projects Ellsworth F. Vines Senior Vice President, Strategic and Corporate Planning Dick Corporation Inc. P. O. Box Pittsburgh, PA P: (412) F: John A. Walewski Graduate Research Assistant Department of Civil Engineering The University of Texas at Austin 1 University Station C1752 Austin, TX P: (512) F: walewski@mail.utexas.edu 230

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247 Project Delivery & Contract Strategy Selection Tool Special Topic: Project Delivery & Contract Strategy Education Team Implementation Session Only Learning Objectives Abstract Learn about the revised Project Delivery & Contract Strategy (PDCS) spreadsheet tool. See how weighting selection factors impacts the PDCS. Learn how to include compensation approaches when analyzing the resulting PDCS. Discover how using the tool with the structured, systematic approach can simplify explaining and documenting the PDCS selection. This implementation session will use a case study to demonstrate key points in identifying the value of implementing CII s PDCS Selection Tool. Successful implementation can mean early identification of critical factors for project success. The PDCS can provide the decisionmaker more insight into how critical it is to identify project objectives early in the project life cycle. Implementation Session Moderator Roger E. Snyder, Team Lead, Office of Project Management & Systems Support U.S. Department of Energy, National Nuclear Security Administration Roger Snyder has been in project management at the U. S. Department of Energy since He has served at all of the Department s National Nuclear Security Administration (NNSA) sites, managing and/or overseeing projects from $1.2 million to $3 billion. He presently leads independent project reviews on projects of varying technologies and complexities, ranging from infrastructure to state-of-the-art applied science facilities for the NNSA Office of Project Management and Systems Support. He earned a bachelor s degree in civil engineering from the University of Illinois and master s in civil engineering from the University of Maryland. Implementation Session Panelists Stuart D. Anderson, Associate Professor, Department of Civil Engineering Texas A&M University Brenda Green, Director of People and Organization Development Fluor Corporation 237

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249 Project Delivery & Contract Strategy Selection Tool Special Topic: Project Delivery & Contract Strategy Education Team Executive Summary This implementation session focuses on Project Delivery and Contract Strategy (PDCS) selection. A project delivery and contract strategy defines the roles and responsibilities of the parties involved in a project and how the owner will pay for services. A project delivery and contract strategy also establishes the project execution framework. A description of a structured and integrated decision support tool that can aid owners in selecting the most appropriate project delivery and contract strategy for their capital projects is presented. The PDCS tool is applied using an interactive case study approach. The PDCS is an owner s tool, but contractors can also use the tool. The research conducted by the CII PDCS Research Team to develop the PDCS selection tool found that the tool: 1. Promotes consideration of a larger set of relevant alternatives in the PDCS selection process. 2. Encourages decision-makers to identify and focus on project objectives and other critical factors early in project development. 3. Enhances insight into PDCS selection through systematic consideration of all key decision variables. 4. Provides a defensible rationale for PDCS selection based on quantification of alternatives. The information presented in the implementation session is based on previous work on project delivery and contract strategy, and the development of a CII Education Module to support the implementation of the PDCS tool. As part of this work, the PDCS Excel spreadsheet was modified to automate calculations and provide additional information for selecting the best PDCS alternative for a project. The Education module consists of a four-hour course. This course covers the following topics: Session I Introduction This session provides an overview of the module, including the need for a formal project delivery and contract strategy (PDCS) selection approach, the solution for the need, the benefits of using the tool, how the tool fits with other CII best practices, the learning objectives, and the course agenda. Session II Criteria for PDCS Characterization This session describes and discusses the approach used to characterize a project delivery and contract strategy alternative. Twelve PDCS alternatives currently used in practice are presented using the proposed characterization. Key assumptions behind supporting the use of the 12 PDCS alternatives are also presented. Advantages and disadvantages of each PDCS alternative are reviewed. 239

250 Project Delivery & Contract Strategy Selection Tool Session III Selection Factors: Overview This session describes 20 factors that drive PDCS selection for a capital project. The methodology followed to develop the 20 factors is discussed. An exercise is conducted to choose selection factors for an engineering, procurement, and construction (EPC) project. Session IV Weighting Selection Factors This session discusses the weighting of selection factors to reflect the relative importance of each selection factor for a capital project. Key terms such as Preference Rank, Preference Scores, and experienced based weighting are discussed. An exercise is conducted to demonstrate the weighting process. Session V Effectiveness Values This session briefly discusses the development of the relative effectiveness values for selection factors and PDCS alternatives. Examples are provided and the rationale for specific effectiveness values is illustrated. Session VI PDCS Selection Tool This session provides a quick walk through of the PDCS selection tool spreadsheet. A flow chart describing each step used in the spreadsheet is reviewed. The Excel spreadsheet is opened and each workbook is described. Finally, compensation approaches are reviewed. A methodology for documenting results is presented. Session VII Case Study This section provides hands on use of the PDCS tool using a case study project. Session IX Conclusions and Wrap up This session wraps up the course with Watch Outs when using the PDCS tool. The benefits of the PDCS tool are reviewed as well as the course objectives. A course evaluation will be conducted at the end of this session. In addition, CII Implementation Resource is currently being revised to reflect changes in the PDCS Excel spreadsheet and to add new information to this resource to better support analysis of PDCS selection. 240

251 Project Delivery & Contract Strategy Selection Tool List of Relevant CII Publications Using Project Delivery and Contract Strategy Tools, Construction Industry Institute, Education Module , due out in September/October Owner s Tool for Project Delivery and Contract Strategy Selection: User s Guide, Construction Industry Institute, Implementation Resource 165-2, Revision 1, due out in September/ October Owner s Tool for Project Delivery and Contract Strategy Selection, Construction Industry Institute, Research Summary 165-1, June Owner s Tool for Project Delivery and Contract Strategy Selection: User s Guide, Construction Industry Institute, Implementation Resource 165-2, September Bowers, D. D., and Anderson, S.D., Characteristics of Integrated Project Delivery and Contract Strategies, Construction Industry Institute, Research Report , in press. Oyetunji, A. A., and Anderson, S.D., Project Delivery and Contract Strategy Selection, Construction Industry Institute, Research Report , September

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253 Project Delivery & Contract Strategy Selection Tool Special Topic: Project Delivery & Contract Strategy Education Team Knowledgeable Points of Contact Stuart D. Anderson Associate Professor, Department of Civil Engineering Construction Engineering & Management Program Texas A&M University Civil Engineering Lab Bldg., Rm TAMU College Station, TX P: (979) F: David A. Arceneaux Contracts Manager Kellogg Brown & Root 601 Jefferson Avenue Houston, TX P: (713) F: 713/ John J. Cioffi Capital Effectiveness Engineer U.S. Steel Gary Works One North Broadway MS-188 Gary, IN P: (219) F: 219/ Brenda Green Director of People and Organization Development Fluor Corporation 1 Fluor Daniel Drive Aliso Viejo, CA P: (949) brenda.green@fluor.com Kenneth A. LaRock Principal Project Engineer 3M Division Engineering 900 Bush Avenue St. Paul, MN P: (651) F: 651/ kalarock@mmm.com Andrew R. Poole Global Process Owner Training Global Capital Management The Procter & Gamble Company 8256 Union Center Blvd. LP-310 Becket Ridge Tech Center CETL West Chester, OH P: (513) F: poole.ar@pg.com Aubrey Smith Construction Manager Kellogg Brown & Root P. O. Box Beaumont, TX P: (409) F: aubrey.smith@halliburton.com Roger E. Snyder Team Lead Office of Project Management & Systems Support U.S. Department of Energy National Nuclear Security Administration Germantown Road (NA-54) Germantown, MD P: (301) F: roger.snyder@nnsa.doe.gov 243

254 Project Delivery & Contract Strategy Selection Tool Timothy P. Thury Project Manager U.S. General Services Administration 819 Taylor Street, Room 12A29 Fort Worth, TX P: (817) F: Paul Wicker Senior Project Manager General Motors Corporation Worldwide Facilities Group Capital Projects 3300 General Motors Road MC Milford, MI P: (313) F: 248/

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263 Defense Update Keynote Address: Lt. Gen. T. Michael Moseley Abstract General Moseley will discuss the defense posture of the U.S. including integrated joint operations and how combining air and space power with ground and sea power results in overwhelming force. He will also give an update on Operation Iraqi Freedom and explain how the overwhelming power of coalition forces helped defeat the enemy in a short timeframe. Keynote Speaker Lt. Gen. T. Michael Moseley, Commander, 9th Air Force and U.S. Central Command Air Forces U.S. Air Force Lt. Gen. Michael Moseley recently has been selected for reassignment as Vice Chief of Staff, Headquarters U.S. Air Force, Washington, D.C. His command comprises six wings in the eastern United States, with more than 350 aircraft and 26,000 active-duty and civilian personnel. As the Air Component Commander for U.S. Central Command, the general is responsible for developing contingency plans and conducting air operations in a 25-nation area of responsibility, stretching from Kenya in eastern Africa across the Arabian Peninsula and Southwest Asia to Pakistan. General Moseley earned both undergraduate and master s degrees in political science from Texas A&M University. 253

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265 Current U.S. Economic Outlook Featured Speaker: Jack Guynn Abstract Jack Guynn will offer his perspective on recent economic developments and the outlook for the U.S. economy. Keynote Speaker Jack Guynn, President & Chief Executive Officer Federal Reserve Bank of Atlanta Jack Guynn has served in his position since He joined the Federal Reserve Bank of Atlanta in 1964 as a systems analyst and has held a variety of assignments. In the mid-1990s, Guynn served as chairman of the Federal Reserve s Financial Services Management Committee, which is responsible for implementing an integrated business plan for Federal Reserve payments services as well as coordinating national Federal Reserve activities that support the plan. Guynn earned a bachelor s degree in industrial engineering from Virginia Tech, a master s in industrial management from Georgia Tech, and completed the Harvard Business School Program for Management Development. Knowledgeable Point of Contact Jack Guynn President & Chief Executive Officer Federal Reserve Bank of Atlanta 1000 Peachtree Street, N.E. Atlanta, GA P: (404) F:

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267 After the War is Over Economic Forum The fundamentals driving construction remain mixed. The lowest interest rates in a generation are offset by excess capacity in manufacturing, a continued flow of manufacturing jobs overseas, and high office vacancy rates. Unemployment remains low by recession standards, but slow employment growth means it will take a long time to absorb the vacancies. Although growth is expected to remain moderate, a slow recovery for private nonresidential building will most likely continue. The situation varies regionally, with the weakest spots along the U.S. coastal areas while the center of the country fares slightly better. Moderator Emerson T. Johns, Operations Leader and Chief Financial Officer Engineering, Facilities & Safety, Health & Environmental Services DuPont Emerson Johns has been with DuPont since 1969, when he started his career as an internal auditor. Many of his assignments have involved interfacing with the Federal government, in particular DuPont s activities at its Savannah River Plant. He also has been involved in DuPont operations in Puerto Rico, Germany, and the United Kingdom. Since 1986, Johns has been at the corporate headquarters in Wilmington, Delaware. Actively involved in CII for the past several years, Johns is former chairman of the CII Research Committee and the 2003 CII Annual Conference chairman. 257

268 Economic Forum Panelists Sara Johnson, Managing Director, Global Macroeconomics Group Global Insight Sara Johnson helps clients assess worldwide business and financial risks and opportunities. The group provides economic forecasts and analyses of over 150 countries as well as research studies of critical economic issues. Johnson previously served as North American Research Director and Chief Regional Economist at Standard & Poor s. She also has advised three Massachusetts governors on public policy and economic development. Johnson holds a bachelor s degree in economics and mathematics from Wellesley College and a master s in economics from Harvard University with concentrations in finance and macroeconomic theory. Robert Murray, Vice President, Economic Affairs McGraw-Hill Construction With McGraw-Hill since 1980, Robert Murray is the author of F.W. Dodge Construction Outlook and coordinates the company s five-year forecast of construction activity for the U.S and nine major regions. He is frequently quoted by the Wall Street Journal on industry developments and his comments have appeared in Business Week, CNN, and other media outlets. He also moderates the Construction Industry Outlook Conference, held in Washington, D.C., each October. Murray earned a bachelor s degree from Princeton and holds both an MBA and a master s degree in economics from Columbia University. David A. Wyss, Chief Economist Standard & Poor s David Wyss is responsible for S&P s economic forecasts and publications. He testifies regularly before Congress, is often quoted in the press, and has appeared on many major television programs. He has written numerous articles for popular and professional publications, and manages research projects, especially in financial risk. His has been with Standard & Poor s since He also has served with the President s Council of Economic Advisers, the Federal Reserve Board, and the Bank of England. Wyss holds a bachelor s degree from MIT and a Ph.D. in economics from Harvard University. 258

269 After the War is Over Economic Forum Knowledgeable Points of Contact Emerson T. Johns CFO & Operations Leader Engineering, Facilities & Safety, Health & Environmental Services DuPont Brandywine Bldg., Room B Market Street Wilmington, DE P: (302) F: Sara Johnson Managing Director, Global Macroeconomics Group Global Insight 24 Hartwell Avenue Lexington, MA P: (781) F: Robert Murray Vice President, Economic Affairs McGraw-Hill Construction 24 Hartwell Avenue Lexington, MA P: (781) David A. Wyss Chief Economist Standard and Poor s 55 Water Street, 44 th Floor New York, NY P: (212) F: david_wyss@standardandpoors.com 259

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271 Skilled Craft Workers Shortage Strategies Addressing the Shortage of Skilled Craft Workers in the U.S. Project Team Learning Objectives Abstract Understand the nature of the current shortages of skilled craft workers. Learn about effective practices being used to address the shortages. Learn about structured approaches that may improve workforce utilization. Hear about the tools you can use to assess and improve your effectiveness. This presentation will introduce an assessment instrument based on a structured suite of effective practices that can improve workforce utilization, and provide a path forward to a more skilled workforce in the future. The implementation session will provide findings of a survey of approximately 1,000 journey level workers. These findings include both demographic information about the workforce and the degree to which conventional practices have been implemented. Attendees will also learn about an assessment instrument for improved workforce utilization. Plenary Session Presenter D. Keith Byrom, General Manager of Employee Relations Zachry Construction Corporation A Zachry employee for over 30 years, Keith Byrom has managed a variety of human resource functions and now is responsible for the implementation of the firm s Web-based learning management system. His experience includes corporate and field experience in the U.S., Israel, Saudi Arabia, Sri Lanka, and Russia. He currently is the chair of the CII project team investigating the shortage of skilled craft workers in the U.S. Byrom earned a bachelor s degree in education from Texas A&M University- Kingsville, a master s in educational psychology from St. Mary s University, and a Ph.D. in education human resource development from Texas A&M University. 261

272 Skilled Craft Workers Shortage Strategies Implementation Session Moderator Robert C. Heath, Project Manager Rohm and Haas Company Robert Heath joined Rohm and Haas in 1969 at Deer Park., Texas, and has served in various engineering, project, and technical management roles. Recently he has represented Rohm and Haas on the CII Board of Advisors as well as the CII Shortage of Skilled Craft Workers in the U.S. Project Team. Heath holds a bachelor s degree in mechanical engineering from Texas Tech University. Implementation Session Participants Stefanie G. Brandenburg, Graduate Research Assistant The University of Texas at Austin Randall E. Evans, Vice President of Construction BE&K Construction Company David M. Goins, Telecomm Construction Manager Tennessee Valley Authority Carl T. Haas, Professor, Department of Civil Engineering The University of Texas at Austin 262

273 Skilled Craft Workers Shortage Strategies Addressing the Shortage of Skilled Craft Workers in the U.S. Project Team Executive Summary Shortages of skilled craft workers continue to plague the construction industry. Employers have attempted to identify the root causes and to develop strategies to overcome these shortages. CII and others have funded research on the problem and generated potential solutions. The industry now uses, although sporadically, a number of initiatives including craft and supervisory training, multi-skilling, and self-directed work teams as well as productivity enhancements utilizing technology, constructability, and prefabrication. Efforts to quantify or qualify the resulting benefits, however, have been unsatisfactory. Despite this research and the efforts to stem the problem, the construction industry s skilled worker pool continues to shrink. The decreasing number of young people entering the work force and the failure to recruit from non-traditional labor pools both contribute to this troublesome trend. Over the past thirty years, real wages of construction workers have declined relative to those of other workers. Poor industry image, tough working conditions, and the industry s perceived poor safety record (despite the stellar performance in safety by CII members) also have contributed to the decline in the number of people willing to enter and remain in the industry. In 2001, CII commissioned its Addressing the Shortage of Skilled Craft Workers in the U.S. Project Team (PT 182) to conduct a study on recruiting and retaining qualified craft workers. Based upon its examination of the industry, the project team concluded that: The journeyman-level work force is as educated as the rest of the U.S. population. The construction work force is failing to attract women and minorities. The construction work force can be characterized as two divergent work forces: one that is satisfied with the work and is willing to participate and improve skill levels; and a second that is transient, unsatisfied, and will quickly leave the industry when other opportunities arise. These two work forces have vastly different characteristics and need to be managed accordingly, thus there is a need for two different work force management strategies. Currently the industry is not utilizing any formal, structured work force management strategies, nor does it have a way to measure the success of its current management practices. PT 182 found a particular interest in a recent collaboration between CII and the Center for Construction Industry Studies (CCIS). That study produced a theoretical model for a revolutionary new way to address the issue in a more comprehensive manner. Although the method, called Tier II, is new and future-oriented, it may have a considerable impact on the construction work force and industry. 263

274 Skilled Craft Workers Shortage Strategies PT 182 developed a complimentary strategy to Tier II to address the work force shortage: Tier I. It is based on the concept that productivity gains from optimal management of the work force will relieve pressure on demand and will encourage workers to remain on a project and in the industry. These productivity gains will be achieved by applying training, collaboration, and the use of technology in a systematic way to maximize the effectiveness of the front-line supervisors. Tier I proposes that the cohesive, structured implementation of industry accepted best practices will improve the management and utilization of the work force. It is important to note that the focus for Tier I is on the management and supervision of the work force on a project. Explicitly choosing a work force management strategy in early project planning stages should allow for systems to be put into place, recruitment to be focused, and crews to be structured in a way that will result in better project performance. Implementing a Tier I or Tier II Work Force Management Strategy will require management commitment. Part of this strategy is the utilization of the Tier I and Tier II Metrics that help to evaluate the implementation of these strategies. CII is developing implementation guidelines and a Work Force Assessment Package. 264

275 Skilled Craft Workers Shortage Strategies Addressing the Shortage of Skilled Craft Workers in the U.S. Project Team Knowledgeable Points of Contact Stefanie G. Brandenburg Graduate Research Assistant The University of Texas at Austin Dept. of Civil Engineering 1 University Station C1752 Austin, TX P: (512) F: sgbrandenburg@mail.utexas.edu Ralph Budd Quality Control & Assurance Mgr. Kværner 455 Racetrack Road Washington, PA P: (724) F: ralph.budd@kvaerner.com D. Keith Byrom General Manager of Employee Relations Zachry Construction Corp. P. O. Box San Antonio, TX P: (210) F: byromk@zachry.com Randall E. Evans Vice President of Construction BE&K Construction Company 2000 International Park Drive Birmingham, AL P: (205) F: evansr@bek.com David M. Goins Telecomm Construction Manager Tennessee Valley Authority 1101 Market Street, SP 4H-C Chattanooga, TN P: (423) F: dmgoins@tva.gov Carl T. Haas Professor The University of Texas at Austin Department of Civil Engineering Construction Management (C1752) Austin, TX P: (512) F: haas@mail.utexas.edu Robert C. Heath Project Manager Rohm and Haas Company 6519 LaPorte Freeway Deer Park, TX P: (281) F: robert_c_heath@rohmhaas.com Janet Love Senior Vice President, Human Resources Dick Corporation P. O. Box Pittsburgh, PA P: (412) F: jlove@dickcorp.com Earl F. Massner Global Construction Process Owner The Procter & Gamble Company 8256 Union Centre Blvd., LP328 West Chester, OH P: (513) F: massner.ef@pg.com Issam M. Srour Graduate Student The University of Texas at Austin 3812 Speedway #203 Austin, TX P: (512) isrour@mail.utexas.edu 265

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317 Using Technology to Build Technology FIATECH Learning Objectives Abstract Learn about declining productivity in the construction industry and the poor performance of this industry relative to others. Learn about the need to accelerate the deployment of new technologies to revolutionize the capabilities of this industry. Learn how technology has reduced cycle time in manufacturing and the learnings for the construction industry. Learn how FIATECH s Capital Projects Technology Roadmap Initiative is integral to the future of large-scale capital development in the U.S. FIATECH s vision of the future is that of a highly automated, seamlessly integrated environment in all phases of capital projects facility life cycles. This presentation will provide a broad overview of the critical capabilities identified in the consortium s Capital Projects Technology Roadmap (CPTR). One owner company that joined FIATECH will explain how the CPTR and other FIATECH activities are addressing the threats facing our industry. Plenary Session Presenter Arthur Stout, Director, Capital Development Group Intel Corporation Art Stout joined Intel in 1979 and now manages both the design and construction process of Intel s largest semiconductor wafer fab expansions in the U.S. and overseas. He also manages the strategies for design and delivery of new facility capital projects worldwide and examines Best in Class activity within both the research community and the marketplace. He is the author of the Project Triangle Principle, which explores the challenge of balancing continuous changes in scope, schedule, and budget. Stout earned a degree in mechanical engineering from Arizona State University. He is a registered engineer in California and Arizona. 307

318 Using Technology to Build Technology Executive Summary The semiconductor industry continues to be propelled by Moore s Law (the number of transistors on a computer chip will double every couple of years). The technological advances in wafer fabrication plants ( fabs ) that are required to maintain this pace could not be possible without the very technology that the fabs build. The manufacturing sector, in general, has embraced this new technology to enable continuous efficiency and productivity improvements. The construction industry, however, has been slow to adopt new technologies and as a result, have not seen the same productivity improvements as the manufacturing sector. Combined with the pressure for manufacturers to compete in a global market, the U.S. construction industry is threatened with the loss of new high tech projects to markets where the low cost of labor allows projects to be built for significantly less capital investment. FIATECH has presented a vision, the Capital Projects Technology Roadmap, that would incorporate the latest technological advances to automate the entire capital delivery process. This application of technology may be the only way in which the construction process can become significantly more productive and therefore reverse the trend of moving high tech projects offshore. CII and FIATECH efforts to work with the National Science Foundation to provide funding for research to make this vision happen should be embraced. 308

319 Using Technology to Build Technology FIATECH Knowledgeable Point of Contact Richard H. F. Jackson Director FIATECH 3925 West Braker Lane (R4500) Austin, TX P: (512) F: Arthur Stout Director, Capital Development Group Intel Corporation 4500 S. Dobson Road, MS OC2-132 Chandler, AZ P: (480) F:

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327 Designing for Construction Automation Design Practices to Facilitate Construction Automation Project Team Learning Objectives Abstract Discover new design practices and automated construction technologies. Understand how barriers introduced in design diminish the use of automated construction technologies. Learn about opportunities and benefits of construction automated construction technologies. The presentation will highlight one example of how a subtle design change can greatly impact the construction contractor s use of automated construction technologies. Plenary Session Presenter Brian Golwitzer, Manager, Corporate Facilities Design Abbott Laboratories Brian Golwitzer is responsible for the design and construction department s $6.5 million expense budget and $100 million in ongoing capital projects. His group provides long-range planning, project management, and project implementation for Abbott sites worldwide. He joined the firm in 1971 and has wide-ranging experience in design, construction, operations, and maintenance. He also is an instructor in the engineering department at the College of Lake County, Grayslake, Illinois. He earned a bachelor s degree in mechanical engineering from the Milwaukee School of Engineering and an MBA from the Lake Forest Graduate School of Management. 317

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329 Designing for Construction Automation Design Practices to Facilitate Construction Automation Project Team Executive Summary Automation in the construction industry involves the use of mechanical and electronic means to achieve automatic operation or control to reduce exposure, time, or effort while maintaining or improving quality. Contractors use automation to reduce costs and schedule, improve production, quality, and safety, and gain related project benefits. Automation in construction, however, has not kept pace with other industries and remains a predominantly labor-intensive activity. Many factors limit the use of automation in construction. Cost, availability, and applicability of automated technologies, along with the knowledge and training required to operate the technologies, are obstacles to implementation. The design of permanent features and the means used to communicate the design may either inhibit or prohibit the use of automated technologies during construction. CII created the Design Practices to Facilitate Construction Automation Project Team to investigate this issue. The resulting research has identified design practices that facilitate the implementation of automated technologies and exposed barriers to and limitations of automation in design. Recommended design practices to facilitate the use of construction automation include: Conduct constructability reviews during the design phase that incorporate consideration of construction automation. Standardize design features and elements. Provide adequate clearance for automated technologies to operate. Prioritize design objectives and compare design alternatives. Use electronic documents and make the documents available to the contractor. Consider the capabilities and limitations of the automated technologies. Numerous factors hinder the consideration of automation, including the structure of the industry, a lack of applicable knowledge by design professionals, and the limitations of the technologies themselves. To implement the findings, the industry and project participants need to: Provide for efficient, timely exchange of project information between constructors and designers. Conduct constructability reviews as a means to facilitate the application of construction automation knowledge in the design phase. Modify traditional contracting arrangements to allow for expanded interaction between designers and constructors. 319

330 Designing for Construction Automation Recognize that designer compensation may need to be modified to provide incentive to consider construction automation in design. Expand education and training of designers regarding construction automation. For the purposes of the study, the following definition was used: Automation: the use of mechanical and electronic means to achieve automatic operation or control to reduce potential exposure, time, or effort while maintaining or improving quality. A survey of was conducted regarding the current use of automated technologies and the practice of addressing construction automation in the design. This information was used to develop and record design practices that facilitate construction automation and expose barriers and limitations that limit the consideration of construction automation in the design. To facilitate the practical implementation of the research results, the project team developed a website that can be accessed by designers. With this online tool, designers will be able to easily access and learn about barriers that prohibit the use of construction automation and search for design practices to incorporate into their designs and design processes. 320

331 Designing for Construction Automation Design Practices to Facilitate Construction Automation Project Team Knowledgeable Points of Contact Randall J. Abdallah Vice President Walbridge Aldinger Company 613 Abbott Street Detroit, MI P: (313) F: Phillip S. Dunston Assistant Professor Purdue University Division of Construction Engineering and Management 550 Stadium Mall Drive West Lafayette, IN P: (765) F: Jerry Foster Structural Engineer U.S. Army Corps of Engineers Kingman Bldg, Rm Telegraph Road Alexandria, VA P: (703) F: Dan Gales Director, Digital Engineering Dick Corporation P.O. Box Pittsburgh, PA P: (412) F: John A. Gambatese Assistant Professor Department of Civil & Environmental Engineering Oregon State University 108 Apperson Hall Corvallis, OR P: (541) F: Brian Golwitzer Manager, Corporate Facilities Design Abbott Laboratories 1401 Sheraton Road Dept. 55L, Bldg. P13-2 North Chicago, IL P: (847) F: Peyton B. Gregory AST.Experimental Facilities Development NASA Langley Research Center MS 441 Hampton, VA P: (757) F: Matthew Hewitt Graduate Research Assistant Oregon State University 202 Apperson Hall Corvallis, OR F:

332 Designing for Construction Automation George R. Pennypacker Design Supervisor DuPont Engineering Brandywine Market Street Wilmington, DE P: (302) F: Linda Phillips Project Manager U.S. General Services Administration PBS/Office of the Chief Architect Center for Construction & Project Management 1500 E. Bannister Road, Room 1160 Kansas City, MO P: (816) F: Roger Rapp Director of IT and CIE Kværner 7909 Parkwood Circle Dr. Houston, TX P: (713) F: John G. Ward, Jr. Manager of Project Controls Bibb & Associates 8455 Lenexa Drive A Kiewit Company Lenexa, KS P: (913) F: jgward@bibb.com Rex Phillips Team Leader, Small Projects Engineering Eli Lilly and Company Lilly Corporate Center, D.C Indianapolis, IN P: (317) F: phillips_rex_e@lilly.com John Jacob Raad Manufacturing Engineer General Motors Corporation 8527 Guinea Rd. Lansing, MI P: (517) F: john.raad@gm.com 322

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339 Small Project Excellence Through Partnering Case Study: International Paper Learning Objectives Abstract Learn how partnering can leverage owner resources and improve performance while lowering cost. Success in partnering comes from: Alignment around strategy, drivers, objectives, and measures of success. A selection process that enables results and meeting business objectives. Faith in a process that when followed produces results and benefit for both parties. Metrics that drive the correct behavior. The presentation will highlight development of an engineering alliance using CII s publication, Model for Partnering Excellence. The engineering strategy was to improve business results of small projects (under $5 million) on par with larger projects led by corporate engineering. Examples will be provided on how following the partnering process resulted in quick integration and a continuous improvement process. The implementation session will feature a panel including at least one regional engineering office manager and his counterpart representing the engineering partner. Details will be provided on work processes and tactics put in place to achieve results quickly. Plenary Session Presenter Chad L. Zollar, Manager of Operations, Corporate Engineering International Paper Chad Zollar has more than 25 years of experience in pulp and paper capital projects. During his career, he has served in various leadership roles on approximately $1 billion in projects ranging from rebuilds and modernizations to green-field facilities. He currently is responsible for the development and deployment of International Paper s corporate engineering resources and the use of benchmarking, metrics, and industry best practices to maximize the firm s capital effectiveness. Zollar earned bachelor s degrees in chemical and nuclear engineering from the University of California. 329

340 Small Project Excellence Through Partnering Implementation Session Moderator Chad L. Zollar, Manager of Operations, Corporate Engineering International Paper Implementation Session Participants Clete Blackwell, Regional Engineering Manager International Paper Oswald Gilbert, Vice President & Chief Engineer BE&K Engineering Lee McClung, Engineering Project Manager BE&K Engineering 330

341 Small Project Excellence Through Partnering Case Study: International Paper Executive Summary International Paper (IP) rolled out a new, stage gated, project delivery system in 2000 that significantly improved project performance. In 2001 this system was benchmarked to be among the best performing project systems among process industry companies and IP s larger projects showed an immediate improvement in performance. However, IP s small project (<$5MM) performance lagged, and when benchmarked, was found to be inconsistent in results. Over the past decade, IP, like many other companies, had downsized plant-engineering staff with little corresponding work process change. A strategy was needed to improve small project performance on par with larger projects. This need led to a complete analysis of IP s internal competency and a comparison with other class A process industry companies. IP found that it was behind in the area of using partnering to leverage internal engineering resources to improve project performance. A partnering strategy was developed to quickly improve IP s small project results. CII s partnering research has produced a best practice documented in Implementation Resource that enables a quick and successful implementation of partnering. This fivephase approach to setting up and implementing partnering consists of the following key steps. 1. Owner s Internal Alignment a. Business drivers b. Objectives and benefits of partnering c. Key owner sponsors identified 2. Partner Selection a. Develop criteria b. Develop reasonable contract c. Define roles and responsibilities 3. Partnership Alignment a. Key partner sponsors identified b. Objectives defined c. Key personnel defined d. Common goals defined e. Team building executed f. Alliance performance measures defined 4. Project Alignment a. Develop specific project objectives b. Provide appropriate tools c. Develop communications methods d. Manage interfaces 5. Work Process Alignment a. Ground rules b. Conflict resolution process c. Allocation of resources d. Project performance measures defined IP followed this approach and installed an owner representative at each regional engineering office to manage the phase 4 and phase 5 details. This proved successful, and in the span of just one year the offices were showing a significant improvement in small project performance. 331

342 Small Project Excellence Through Partnering The major findings of this case study validated the CII partnering model as a best practice for defining and implementing a partnership. The following items were among those included in the CII Partnering Tool Kit as necessary to a successful relationship. However, the case study highlighted these items as the most important to a quick and successful implementation: Most problems encountered were a direct result of alignment. Most of the time, the issue was on the owner side. Any time invested in achieving alignment prior to implementation pays huge dividends later. The placement of a full-time owner rep at the partner s office was instrumental to maintaining alignment and managing performance. When issues do come up, they must be addressed quickly and decisively. People will resist change and test any new system. Make sure the metrics are realistic, allow each side of the alliance to be successful, and get at the real objectives of the relationship. A core team of individuals to interface with the owner reps helped to quickly advance the relationship and facilitated continuity from project to project. Resource planning and core team selection were keys to success and should not be taken lightly. Sources of Information Model for Partnering Excellence, Research Summary 102-1, Construction Industry Institute, Partnering Toolkit, Implementation Resource 102-2, Construction Industry Institute, Small Project Benchmarking Summary report for International Paper, by Independent Project Analysis, Inc., Reston, VA,

343 Small Project Excellence Through Partnering Case Study: International Paper Knowledgeable Points of Contact Clete Blackwell Regional Engineering Manager International Paper c/o BE&K Engineering 2000 International Park Drive Birmingham, AL P: (205) F: Oswald Gilbert Vice President & Chief Engineer BE&K Engineering 2000 International Park Drive Birmingham, AL P: (205) F: Lee McClung Engineering Project Manager BE&K Engineering 2000 International Park Drive Birmingham, AL P: (205) F: Chad L. Zollar Manager of Operations, Corporate Engineering International Paper Cincinnati Technology Center 6285 Tri-Ridge Blvd. Loveland, OH P: (513) F:

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359 Six Sigma Deployment in the EPC Business Special Presentation Learning Objectives Abstract What is Six Sigma? Find out how Six Sigma was deployed across an E&C organization. Learn about the challenges of global deployment. Discover results achieved through Six Sigma. This presentation will describe how Six Sigma, a data-driven process improvement methodology, is being applied across a major engineering and construction company to improve business results. The rigor of a Six Sigma program complemented by a focus on people, processes, and tools, has resulted in an expansive deployment throughout this corporation. Also described will be process improvements that have delivered world-class performance results. Featured Speaker Mary B. Moreton, Manager, Six Sigma Bechtel Corporation Mary Moreton is responsible for the global implementation of Six Sigma across 12 Bechtel organizations. She has 29 years of domestic and worldwide experience in advanced systems, government, petroleum, chemicals, mining, and metals projects. She was most recently manager of fossil technology and previously served as manager of engineering for Bechtel Power. She has had oversight of more than 1,000 engineering staff and over 250 technical personnel in design execution centers in Taiwan, Egypt, and India. Moreton earned a bachelor s degree in engineering from the University of Arizona and is a Registered Professional Engineer in California. Knowledgeable Point of Contact Mary B. Moreton Manager, Six Sigma Bechtel Corporation 5275 Westview Dr. Frederick, MD P: (301) F: mbmoreto@bechtel.com 349

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367 Effectiveness of Innovative Crew Scheduling Cost Effectiveness of Innovative Crew Scheduling Project Team Learning Objectives Abstract What are the best schedules for safety, productivity, project cost, project duration and absenteeism? Our Implementation Tool will help you select the right scheduling technique to best fit your project issues. What is the most productive schedule? See what the data indicate. See how total hours worked affects the productivity of your project regardless of schedule technique. A model was derived to determine the productivity of various work crew schedules based on actual project data. This model can be used proactively or reactively. It will allow the contractor or owner to determine what the expected productivity level will be for a given scheduling technique, or to determine what the actual productivity was during or after project completion. An example will show how easily this formula can be applied. During the implementation session, a detailed discussion will allow all to learn how to use this new tool to help them select the proper scheduling technique for their project. Plenary Session Presenter Richard L. Camlic, Plant Project Manager, Sheet Products & Utilities U.S. Steel Corporation Rich Camlic has been with U.S. Steel since 1963 and has served in a variety of positions. Among his assignments, he has taught the electronic apprenticeship course and held various line management positions. He has also served as area manager, general foreman, senior design engineer, senior process engineer, senior project engineer, and process manager. Camlic holds electrical engineering and MBA degrees from the Illinois Institute of Technology. 357

368 Effectiveness of Innovative Crew Scheduling Implementation Session Moderator Robert Kaiser, Associate Project Manager Eli Lilly and Company Since joining Eli Lilly in 1984, Bob Kaiser has managed the design and delivery of office, manufacturing, and lab facilities at many of the company s U.S. sites. Significant projects include managing the design and early construction for a $150 million discovery lab facility at the Lilly Corporate Center in Indianapolis and the recent design and construction of an office and sales training facility. He is currently managing the delivery of a $150 million development lab facility at the Lilly Technology Center. Kaiser earned a bachelor s degree in architecture from Ball State University and is a Registered Architect in Indiana and Ohio. Implementation Session Participants Richard L. Camlic, Plant Project Manager, Sheet Products & Utilities U.S. Steel Corporation Awad S. Hanna, Professor, Civil & Environmental Engineering University of Wisconsin Madison Lynn G. McCord, Estimating Manager Zachry Construction Corporation Gary C. Nuckols, Site Construction Manager Fluor Daniel Craig S. Taylor, Jr., Graduate Research Assistant University of Wisconsin Madison 358

369 Effectiveness of Innovative Crew Scheduling Cost Effectiveness of Innovative Crew Scheduling Project Team Executive Summary Several crew schedule options are available to owners and contractors when they select schedules for a project or when they find it necessary to compress or to accelerate a schedule. Techniques such as overtime, shift work, rolling or straight four-ten hour days, and other innovative schedules all have their own set of unique benefits and requirements for proper application. Many studies have been funded on the impact of scheduled overtime on labor productivity. Information on innovative scheduling techniques (overtime, shift work, rolling or straight 4-10s, staggered 7-10 hour days, and others), however, is limited regarding its impact on safety, productivity, project duration, or cost. CII, therefore, established a project team to research innovative scheduling. The objective was to uncover best practices about when to apply them, conditions for their successful application, and the cost implications when using them. The project team focused its efforts on determining if such schedules could provide sound choices for contractors and owners when planning their projects. The team gathered data from a sizable number of projects and found both good and bad news. The bad news was that not much is being done in the way of truly innovative schedule techniques; in fact, most supervisors and crews prefer the five day, eight hours a day traditional schedule. The good news was that the team was able to collect an impressive amount of productivity data and then developed a predictive productivity model that can be of benefit in selecting schedules industry-wide. The project team also created an implementation tool (CII Implementation Resource 185-2) that is a summary of the information collected and is organized in tabular form (referred to as a look up table ). It is intended to aid contractors in their selection of a crew scheduling technique that will meet the specific needs of their projects. The table compares each crew scheduling technique, the project characteristics, and the issues that may be impacted by the use of different crew schedules. The tool is intended to aid construction professionals in the selection of a crew scheduling technique that will meet the requirements of a specific project. Readers should go to the CII website, download the tool, and use it to improve project planning. Research Methodology From the suggestions of the team and pilot survey respondents, a final survey was developed to collect qualitative information on crew schedule impacts on a variety of project characteristics. The final questionnaire was delivered to contractors and union representatives. An additional form was sent to contractors to gather quantitative data from actual projects. Hypothesis testing was applied to the data to provide evidence of the relative productivity levels of a variety of crew scheduling techniques. Finally, a model was developed through the use linear regression showing the expected labor productivity, given the average number of hours worked per crewmember per week and the total actual work hours to complete the project. 359

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371 Effectiveness of Innovative Crew Scheduling Cost Effectiveness of Innovative Crew Scheduling Project Team Knowledgeable Points of Contact JeffBaxter Cost Engineering Manager The Procter & Gamble Company Reed Hartman Highway Cincinnati, OH P: (513) F: Richard L. Camlic Plant Project Manager, Sheet Products & Utilities U.S. Steel Fairfield Works MS-ENGR P. O. Box 599 Fairfield, AL P: (205) F: Rodney A. Evans Senior Project Executive Near East Asia Branch U.S. Department of State OBO/PE/CC/NEA SA-6, Room 866 Washington, DC P: (703) F: Awad S. Hanna Professor, Civil & Environmental Engineering University of Wisconsin Madison 2314 Engineering Hall 1415 Engineering Drive Madison, WI P: (608) F: Robert Kaiser Associate Project Manager Eli Lilly and Company Lilly Corporate Center Indianapolis, IN P: (317) F: Lynn G. McCord Estimating Manager Zachry Construction Corporation P. O. Box San Antonio, TX P: (210) F: Gary C. Nuckols Site Construction Manager Fluor Daniel P. O. Box RTP, NC P: (919) F: Kenneth E. Smith Construction Manager BE&K Construction Company 2000 International Park Drive Birmingham, AL P: (205) F: Craig S. Taylor, Jr. Graduate Research Assistant University of Wisconsin Madison 2314 Engineering Hall 1415 Engineering Drive Madison, WI P: (608) F:

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389 Journey to Zero Injuries Using CII Best Practices Case Study: BE&K Construction Company Learning Objectives Abstract Increase awareness of CII safety best practice for zero injuries. Learn practical tools and techniques to achieve zero injuries. Find out what other companies are doing to achieve continuous improvement in safety performance. Since 1993, CII owners and contractors have applied zero injury techniques to achieve outstanding safety results. This presentation will provide a case study with specific examples of one contractor s experience in changing safety culture. This case study traces one contractor s experience in significantly improving their safety processes, behaviors and results using the CII Zero Injuries Best Practices over the last decade. The implementation session will include examples to help CII members break through the safety plateau on the road to zero. Specific tools will be shared on the benefits of applying the same best practices on different worksites. Plenary Session Presenter Susan M. Steele, Vice President, Industrial Services BE&K Construction Company Sue Steele is responsible for BE&K s strategic planning implementation, business development, and operations management. BE&K Industrial Services provides maintenance and plant services and reliability consulting services for manufacturing and industrial clients. Steele previously was project manager for the BE&K GE Alliance, which included work at 30 project sites in the U.S., Canada, Mexico, and Brazil. Arizona State University s Del Web School of Construction recognized her in 1997 as an Outstanding Woman in Construction. A graduate of Auburn University, she also holds an MBA from the University of Miami. 379

390 Journey to Zero Injuries Using CII Best Practices Implementation Session Moderator Susan M. Steele, Vice President, Industrial Services BE&K Construction Company Implementation Session Participants Brent H. Bailey, HSSE Manager bp Decatur Works Billy R. Cassidy, Site Manager, BE&K Industrial Services bp Decatur Works Joe G. Siegel, Senior Safety Coordinator, BE&K Industrial Services bp Decatur Works 380

391 Journey to Zero Injuries Using CII Best Practices Case Study: BE&K Construction Company Executive Summary Over the last decade, the Construction Industry Institute has made significant progress in improving the safety performance of CII member organizations. In 1993, a CII research team comprised of owners, contractors, and academic researchers identified five techniques that would lead to improved safety performance. These techniques included: 1. Pre-project/pre-task planning for safety 2. Safety orientation and training 3. Written safety incentive programs 4. Alcohol and substance abuse programs 5. Accident/incident investigations As a member of CII, BE&K determined to strengthen its safety program to achieve zero injuries using these CII recommended techniques. This case study outlines several strategies BE&K employed to implement zero injuries techniques on its worksites. Initially, a company-wide safety conference was held with all site leaders and project managers to gain commitment. A safety steering team was then established by the company s CEO, Mike Goodrich. This Safety, Health, and Environment Committee includes executive leaders from each business unit. Each division was challenged to implement the zero injuries techniques on every worksite so that all BE&K employees would know, understand, and support a zero injuries culture. One area with the most improvement was standardization of techniques, which includes such items as safety training, pre-task planning, and accident investigations across all sites. BE&K established a company-wide safety training course to communicate CII zero injuries techniques called Safety Awareness. The course was taught at all worksites and helped BE&K achieve consistency in zero injuries best practices. The program was so successful that the American Society for Training and Development presented BE&K an Excellence in Training Award in In 2001, CII reviewed its list of zero injuries techniques and added four key areas to the original five: 1. Demonstrated management commitment 2. Staffing for safety 3. Worker involvement and participation 4. Subcontractor management 381

392 Journey to Zero Injuries Using CII Best Practices To further drive down BE&K incident rates, the company launched a behavioral-based employee participation program called the Safety Sentinel Behavioral Observation Program. The intent of the program is to increase worker involvement and participation on each site. Sentinels are craft employees who conduct daily observations (or audits) and report findings in the field. At the bp Decatur Works site, BE&K serves as the continuous-presence contractor and now has an exceptional Safety Sentinel Program with active client support and endorsement. The employee-driven safety committee of sentinels is extensively trained in hazard recognition to identify unsafe behaviors, practices, and procedures being practiced by front-line employees. Incident rates have significantly declined on BE&K project sites where this program has been employed. In 2002, the BE&K Industrial Services Division made significant progress in reducing its incident rates by implementing the techniques of demonstrated management commitment and more fully utilizing other CII Best Practices. The division cut its recordable rate in half and, for the first time, remained below 1.0 (.92). Twelve sites achieved zero injuries, one site received the prestigious OSHA VPP Merit Award, and the division also garnered multiple other corporate safety awards. The specific management actions contributing to this success included: Site-specific safety plans for each project Supervisor training in zero injuries techniques Monthly Process Safety Evaluation (Best Practices) Checklists Increased employee communications regarding safety performance Safety Olympics incentive program Increased accountability and reporting Near-misses regularly reported Top management participation in incident investigations Increased worker participation in safety observations The bottom line is this: CII zero injury techniques work. BE&K has reduced its recordable incident rate to.98 in 2001 and.89 in The company has not reached zero yet, but with CII research and support, it is confident that the goal is now attainable. 382

393 Journey to Zero Injuries Using CII Best Practices Case Study: BE&K Construction Company Knowledgeable Points of Contact Brent H. Bailey HSSE Manager bp Decatur Works P. O. Box 2215 Decatur, AL P: (256) F: Billy R. Cassidy Site Manager BE&K Industrial bp Decatur Works P. O. Box 1138 Decatur, AL P: (256) F: billy.cassidy@bp.com J. G. Siegel Senior Safety Coordinator BE&K Industrial bp Decatur Works P. O. Box 2215 Decatur, AL P: (256) F: siegeljg@bp.com Susan M. Steele Vice President, Industrial Services BE&K Construction Company P. O. Box 2332 Birmingham, AL P: (205) F: steeles@bek.com 383

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409 Carroll H. Dunn Carroll Dunn, the Project Director of the Construction Industry Cost Effectiveness Study by The Business Roundtable that led to the creation of the Construction Industry Institute, died January 31, He was instrumental in the establishment of CII and was active throughout its formative years. CII created the Carroll Dunn Award of Excellence in his honor and presented him the first Dunn Award at Keystone, Colorado, in 1985 to him during the institute s first annual conference. The award is CII s highest honor. Carroll Hilton Dunn was the born in Lake Village, Arkansas, on August 11, He was the second of four sons. His father was a farmer, although he had part-time jobs. Except for a three year period from , when the family lived in south Mississippi, Carroll s early years were spent in Lake Village. He graduated from Lakeside High School in 1934, where he participated in track and football. In 1934, he enrolled at the University of Illinois, and received his baccalaureate degree in mechanical engineering in His undergraduate education was financed primarily through his summer work, part-time jobs during college, and loans. He participated in the ROTC program each of his four years of undergraduate study at the University of Illinois. In 1947, he earned a master s degree in civil engineering from Iowa State University. Upon his graduation in 1938 from the University of Illinois, he accepted a commission in the United States Army Corps of Engineers. He retired in 1973 as a Lt. General after a distinguished 35-year career. His last assignment was as Director of the Defense Nuclear Agency. Immediately prior to that, he was Deputy Chief of Engineers, and earlier as Director of Construction and as Assistant Chief of Staff for Logistics, Military Assistance Command, Vietnam. During his military career, Dunn served as Director of the Titan II Missile Program, and Division Engineer of the Southwestern Division of the Corps of Engineers. Among projects under his direction was the construction of the NASA Manned Spacecraft Center, now Lyndon B. Johnson Space Center, in Houston, Texas. He was a registered professional engineer in the State of Texas and the District of Columbia, a Fellow in the American Society of Civil Engineers, and a member of the Society of Military Engineers. In October 1973, he joined Consolidated Edison Company as Vice President, Construction, and was promoted to Senior Vice President, Construction, Engineering, and Environmental Affairs. He was responsible for upgrading and expanding the power generation for the New York City metropolitan area, and for conducting a multi-million dollar study of the impact of power plants on the fish ecology of the Hudson River. 399

410 Carroll H. Dunn In May 1980, Dunn began work as the full-time Project Director of The Business Roundtable s Construction Industry Cost Effectiveness (CICE) Project. Under his leadership, the CICE Project produced a series of 24 reports that eventually reached a distribution of more than one million copies. The CICE study led to the creation of the Construction Industry Institute (CII) at The University of Texas at Austin. Dunn s service to CII was considered so valuable that he was appointed an ex-officio member of all the original committees and research task forces. In 1985 at Keystone, Colorado, during the first CII Annual Conference, the Executive Committee of CII presented Dunn with an award named in his honor, the Carroll H. Dunn Award of Excellence. The award, which was created by the Executive Committee to honor an individual who has made singular and notable contributions to the cost effectiveness of the construction industry, came as a total surprise to Dunn, and he emphasized upon its presentation that he had no knowledge of its creation nor, he said, did he know beforehand that he would be so honored. He was gracious in accepting the award, which continues to be a major part of the CII Annual Conferences. Dunn personally presented the award to each recipient until 1998, when health concerns prevented him from attending the 1998 and subsequent conferences. He was always quick to point out that he never participated in the selection of any of the recipients, but held the award and those who were selected to receive it in especially high esteem. In August 2002, he and his wife, Letha, sent a videotape message from their home in Ft. Belvoir, Virginia, to the Annual Conference audience (in Keystone, Colorado) expressing their disappointment in not being able to attend and congratulating all of the Dunn Award of Excellence recipients. Today, the Carroll H. Dunn Award of Excellence, CII s highest honor, is recognized as one of the most prestigious awards of its kind in the construction industry. Dunn leaves behind his loving wife of 63 years, Letha, of Ft. Belvoir, Virginia, his daughter, Carolyn Dean of Denver, Colorado, son, C. H. Stretch Dunn of Birmingham, Alabama, five grandchildren and seven great grandchildren. 400

411 Recipients of the Dunn Award of Excellence Carroll H. Dunn (1985) inspiring leader and project manager of the CICE Project who guided the establishment of CII as a principal national forum for construction research Charles D. Brown (1987) early application of cost-effectiveness principles led to stellar engineering career; DuPont representative to CICE study; energetic advocate of CICE findings Ted C. Kennedy (1988) a founder of BE&K; influential member of original CII Board of Advisors; recognized industry leader in education, training, and employee development Robert H. Miller (1989) intense DuPont participant during CICE who later chaired CII, oversaw its first published research, and helped to establish its educational program Louis Garbrecht, Jr. (1990) pioneered engineering of the construction process and proved that constructability is cost-effective; early advocate of project management research; original chairman of CII upon its establishment in 1983 Clarkson H. Oglesby (1991) research pioneer and author of classic construction engineering textbooks who established the first graduate studies in construction at Stanford University James M. Braus (1992) Shell Oil and CICE leader and diplomat who bridged diverse opinions within CII to keep the Institute unified and authored the original CII Strategic Plan Gary D. Jones (1993) hard-working, determined 1987 CII chairman whose implementation challenge that year led to a dramatic change in how CII viewed implementation Jack E. Turner (1994) originated idea that led to establishment of The Business Roundtable, and later suggested a study of owner-contractor issues that became the CICE Project 401

412 Recipients of the Dunn Award of Excellence Daniel J. Bennet (1995) aspiring association executive, CICE participant, and author of CII by-laws who led establishment of the National Center Construction Education and Research John W. Morris II (1996) led effort to unite Corps of Engineers, Federal government, and environmentalists in shaping national water resources policy during turbulent transition era Richard L. Tucker (1997) professor, productivity research pioneer, CICE participant, and renowned industry speaker who personally led efforts to establish CII at UT Austin and served as its first Director from Edward W. Merrow (1998) researcher who developed the Project Evaluation System, an analytical tool to benchmark project data, and founded Independent Project Analysis (IPA) Donald J. Gunther (1999) hard-driving Bechtel executive whose trademarks of leadership, dedication, and teamwork influenced others both personally and professionally as well as changed Bechtel s approach to worldwide business Arthur J. Fox, Jr. (2000) long-time editor of Engineering News-Record who traveled around the world to report on more than four decades of industry progress and who established ENR s Engineer of the Year award more than 30 years ago H. B. Zachry, Jr. (2001) a born constructor, he led a road contracting firm founded by his father to a worldwide leadership role through personal dedication to the welfare of his employees and the principles of quality, safety, and client satisfaction Joseph J. Jacobs (2002) Jacobs Engineering founder who led his company to the top echelons of the engineering world and whose entrepreneurial spirit and ethical beliefs continue to inspire those who work for him 402

413 Outstanding CII Researcher for 2003 Jimmie Hinze Jimmie Hinze has been selected as the Outstanding CII Researcher for According to the panel of judges, Dr. Hinze s contributions to CII research exceed all criteria and add honor and distinction to this award. Hinze is the Holland Professor in the M.E. Rinker, Sr. School of Building Construction at the University of Florida and also is Director of the Center for Construction Safety and Loss Control at the university. This year he completed the latest in a series of four research projects for CII in which he was the principal investigator, starting in 1993 and ending in The results of these research initiatives have been widely implemented and the recommended practices coming from the research are routinely utilized by both CII member and non-member organizations throughout the North American construction industry. His portfolio of CII research projects began in the late 1980s and includes the following: Managing Subcontractor Safety; Indirect Costs of Construction Accidents; Design for Construction Safety; Making Zero Accidents a Reality; Making Zero Accidents a Reality: Shutdowns, Turnarounds, and Outages; and The Role of Owners in Construction Safety. This research has been instrumental in improving safety performance in the construction industry. In addition to his research on safety related issues for CII, Hinze is recognized as one of this country s foremost researchers on construction safety. He began this focus on safety with his doctoral dissertation at Stanford University in 1976 entitled, The Effect of Middle Management on Safety in the Construction Industry. Since that time, he has written the widely acclaimed book, Construction Safety, and has co-authored two other books on construction safety. He also is the author or co-author of 59 journal articles and 48 conference articles on construction safety. Hinze is a Registered Professional Engineer (Missouri) and is a Master Trainer with the National Center for Construction Education and Research. He holds bachelor s and master s degrees in architectural engineering at The University of Texas at Austin and earned his Ph.D. at Stanford University. CII takes great pride in selecting Dr. Jimmie Hinze as the Outstanding CII Researcher for

414 Outstanding CII Researcher for 2003 Award Criteria The research significantly contributed to the improvement of the construction industry. The research is completed and products delivered. The researcher s excellence is recognized by his or her CII team members, the staff, and the membership. The researcher s report to CII is innovative, well written, and timely. Previous Recipients of the Outstanding CII Researcher of the Year Award 1995 Mike Vorster, Virginia Polytechnic University 1996 Edd Gibson, The University of Texas at Austin 1997 Stu Anderson, Texas A&M University 1998 Gary Oberlender, Oklahoma State University 1999 Ed Back, Texas A&M University 2000 Jeff Russell, University of Wisconsin-Madison 2001 Ed Jaselskis, Iowa State University 2002 Carl Haas, The University of Texas at Austin Outstanding CII Researcher Award Panel of Judges W. Edward Back Associate Professor, Clemson University Melissa B. Herkt William L. Johnsmeyer Jerry R. Koogler Louis L. Prudhomme Vice President, global Project Management, GlaxoSmithKline President, Butler Construction, Butler Manufacturing Company General Manager, Graycor Industrial Contractors Associate Director for Research, Construction Industry Institute 404

415 Outstanding Instructor for 2003 James M. Neil, Co-Recipient The late Dr. James M. Neil is the co-recipient of the 2003 Outstanding Instructor Award. In the formative days of CII, Neil chaired the Cost/Schedule Task Force that produced 10 CII publications dealing with the basics of project controls and project management, one of the most prolific publishing efforts ever by CII. Through the years he crafted and delivered CII Education Modules on Work Packaging for Project Controls, Productivity and Performance Management, and Managing Multiple Small Projects, and most recently was active with the updating of the Small Projects module. Even though the Cost/Schedule Task Force publications were published in the 1980s, they are still the most relevant material available on project controls. Many professors use this material as a basic reference for college-level courses introducing the fundamentals of project management. As an instructor/presenter of several of the Continuing Education Courses offered through the CII hub universities, Neil could always be counted on to provide excellent delivery, and never lost his zeal to have meaningful dialogue with the professionals of the industry and they sensed this with deep appreciation. In his later years, when most of us would be happy just savoring the memories of a successful career of contribution to the advancement of the construction industry, Neil remained actively involved in discovering and publishing works to help advance the industry. When Neil passed on this past May, the industry lost a valuable advocate for excellence. Many in the industry count it a great honor to have known and worked with him. The Construction Industry Institute is pleased to recognize the dedicated service of Dr. Jim Neil with the Outstanding Instructor Award. 405

416 Outstanding Instructor for 2003 Emmitt J. Nelson, Co-Recipient Emmitt J. Nelson is the co-recipient of the 2003 Outstanding Instructor Award. Nelson led Shell in emphasizing contractor safety performance to reflect Shell s own employee s safety performance. He also led a corporate-wide contractor safety strategy. His action significantly reduced injury to contractor employees, lowered contractor s Worker s Compensation Insurance costs, increased profits for the contractors, and provided more competitive bidding on Shell projects. He represented Shell on The Business Roundtable Construction Committee, where he served as Chairman in With a long and distinguished career as a senior manager at Shell, Nelson is recognized by his peers as a leader in the industry. Following his retirement, he founded Nelson Consulting and specializes in teaching the Zero Injury concept, leading clients in the installation of the safety management processes required to create a zero injury culture. His clients now often achieve a million work-hours without a recordable incident. During 1987 and 1988, Emmitt served as Co-Chair of the Center of Construction Education at Texas A&M University. He served as Chairman of the Construction Industry Institute Zero Accidents Task Force from 1990 to This task force performed research into the Zero Injury concept. The CII videotape One Too Many and its associated zero injury publications have become some of CII s most widely accepted products and have led to a dramatic improvement in safety by CII members. Nelson has authored or co-authored numerous articles on construction safety management and has recently published The Employer Safety Guidebook to Zero Employee Injury. He also remains active, presenting seminars and training sessions focused on improving safety performance in the industry. Dr. Richard L. Tucker s preface to Emmitt s recent book, The Zero Injury Guide Book, further asserts Emmitt s contribution to CII and the construction industry. As one of the construction industry s most noted safety consultants, Emmitt recently has been elected to the National Academy of Construction. The Construction Industry Institute is pleased to recognize the dedicated service of Emmitt J. Nelson with the Outstanding Instructor Award. 406

417 Outstanding Instructor for 2003 Award Criteria The individual is an exceptionally effective instructor whose contributions, talent, and efforts have been recognized for outstanding performance by the participants in learning activities involving CII education material. The individual has presented CII material in ways that have significantly enhanced the learning process. Consideration will also be given to the degree to which the nominee has contributed to the development of CII education material. Previous Recipients of the Outstanding Instructor Award 1995 Jorge Vanegas, Georgia Tech 1996 Stan Nethery, Dow Chemical 1997 Steve Sanders, Clemson University 1998 Edd Gibson, The University of Texas at Austin 1999 Don Shaw, Ontario Hydro 2000 Gary Aller, Arizona State University 2001 Ed Back, Clemson University 2002 Ed Ruane, J. A. Jones Construction Company Outstanding Instructor Award Panel of Judges W. Edward Back Associate Professor, Department of Civil Engineering, Clemson University William W. Badger Manuel A. Garcia Arnold M. Manaker Leo McKnight Director, Del E. Webb School of Construction, Arizona State University Associate Director for Education, Implementation, Knowledge, Construction Industry Institute Project Manager, Paradise SCR, Tennessee Valley Authority Director, Training & Development, Hilti Corporation 407

418 Outstanding Instructor for

419 Outstanding Implementer for 2003 Bernard J. Fedak The 2003 Outstanding Implementer is Bernard J. Fedak, Managing Director Engineering, United States Steel Corporation. Fedak has championed the entire implementation process, which has become the standard for identifying, developing, appropriating, executing, and benchmarking all major projects within U.S. Steel. He led the continuous improvement process for engineering within the company for the past 18 years, and guided it through a most difficult period. Throughout his tenure, he has led by example, overcoming skepticism and opposition, in the drive to improve the effective use of capital within U.S. Steel and the steel industry. Starting in the early 1990s, Fedak saw the need to improve the manner in which projects were being developed and executed. Largely through his efforts, U.S. Steel developed a methodology and training course entitled Design for Start-Up, in which many of the concepts and methods parallel the CII Best Practices. Although Design for Start-Up was a huge success, additional improvements were being developed within and outside of U.S. Steel. Fedak was instrumental in getting U.S. Steel to join CII and quickly volunteered personnel on to research teams and committee positions. These people became implementers responsible for ensuring that CII Best Practices were incorporated into everyday project activities. From the results obtained from the implementation of best practices, Fedak realized that a quantum change in the U.S. Steel projects methodology was required. He championed the development of an Internet-based project management system that was implemented for all U.S. Steel projects. This system, the USS Project Delivery System (PDS), defines the total process roadmap utilizing the five phases as defined in many CII publications. It includes Design for Start-Up and other concepts interwoven with CII Best Practices and other publications. All of the CII Best Practices and Pending Best Practices are linked directly to the project management process steps and the major CII publications related to each Best Practice are easily accessible, downloadable, and printable in this format. In addition, his company has implemented the use of a Web link directly to the CII Knowledge Structure, accessible instantaneously by any project manager from any project site. This ability to access CII knowledge and having the CII Best Practices imbedded into the project process system have facilitated both their use and acceptance. In fact, the easy accessibility of CII concepts and practices has also facilitated the acceptance of the Project Delivery System across the various experience levels of project managers. The Construction Industry Institute is proud to recognize Bernie Fedak as the 2003 CII Outstanding Implementer. 409

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