VEIL of OPPORTUNITY AND/OR VEIL of CONFUSION. Presented by: Carmine Militano, P.Eng. Senior VP Business Development and Innovation December 10, 2014

Transcription

1 VEIL of OPPORTUNITY AND/OR VEIL of CONFUSION Presented by: Carmine Militano, P.Eng. Senior VP Business Development and Innovation December 10, 2014

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3 The A/E/C industry is being transformed through a number of drivers of change. While predicting the exact timing and rate of change is impossible, change is inevitable. The key is to understand which of these forces are near term, which are long term and how your competitive advantage will either be enhanced or eroded

4 What are the emerging market trends? Will these trends cause a linear or non-linear (paradigm) shift in the a/e/c marketplace? What does this mean to me? What will I need to do to capitalize on these trends? Or conversely, why should I be bothered?

5 If the rate of change inside the institution is far behind the rate of change outside of the institution, the only question is the timing of the end

6 Fast today is not fast enough for tomorrow Good today is not good enough for tomorrow And cheap today is not cheap enough for tomorrow He also proclaims Good, fast, cheap pick all three and then add something

7 We simply cannot continue building the way we have. We need to leverage new technologies, massive data sets, and new processes to increase productivity, scale the scope of design, and improve the places where we live and work.

8 How can you lead amid disorienting change? Start by understanding the forces that are colliding

9 POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL ENVIRONMENTAL LEGAL / REGULATORY

10 Need to replace aging infrastructure reaching crisis proportions Competing demands for capital $$ Competition for scarce resources (energy, water, materials, talent) Aging population Urbanization Democratization of knowledge Mobile workforce + Loss of institutional knowledge due to retirements

11 Ability to create high performance teams Implementation of PM best practices The ability to reshape the McLeamy curve through the Integrated Design Process Understanding Integrated Project Delivery (as either a form of contract or a philosophy) Lean Construction Planning Total Cost Management

12 Effective use of VDC technologies Use of technology as an enabler for collaboration Leverage mobile technology for real time access to information

13 Structure Processes Tools People

14 Owner Prime Consultant Project Manager Construction manager An integrated team is the most important critical success factor Must work within a sprit of collaboration and partnership

15 A project organization structure that is aligned with the key project drivers. Clearly defined roles and responsibilities A shared vision for a successful project. Clearly defined project objectives A platform for meaningful owner engagement.

16 The implementation of proven project scope, cost and schedule control systems and techniques. Timely status reporting. The ability to proactively manage risk, identify problems and negative trends, determine corrective measures and take action.

17 Clearly defined protocols for communication and decision making. A project implementation strategy and project contracting approach aligned with the drivers and constraints. An integrated project execution plan. An integrated total quality management plan

18 Schedule Lowest Administrative Cost Lowest Life Cycle Cost Cost Certainty Lowest First Cost OwnerStaff Development Owner Control Owner Risk Market Conditions Meeting Regulatory Requirements Performance Guarantees Stakeholder Influence 19

19 Includes: value preservation, value extraction, and value creation

20 Value Preservation earned value management; quality management; total cost management, Value Extraction collaboration platform, value engineering, constructability reviews Value Creation integrated project delivery (ipd = d-b-o optimization); ideation platform;

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25 Goal driven Facilitated Structured decision process Collaborative Holistic Iterative Requires non traditional expertise

26 Multi-utility attribute analysis RAPID decision framework Options analysis (LCCA, NPV) What-if scenario analysis

27 Architecture Engineering Construction Project Management THE MASTER BUILDER

28 Defined by AACE as : the effective application of professional and technical expertise to plan and control resources, costs, profitability and risks. Simply stated, it is a systematic approach to managing cost throughout the project life cycle to deliver the entire project below the target cost

29 Endorsement of the project baseline by all relevant stakeholders at the schematic design phase Assignment of clear responsibility for scope tracking and management Implementation of integrated project controls (earned value management system)

30 Proactively look for cost-optimization opportunities through constructive dialogue with the a/e team and the collaborator subtrade team Define the cost tracking process, track and trend quantities, update estimate, and compare to key metrics in order to validate the component and subtrade estimates (Note: the items to track and trend are a function of project risk, complexity, importance, sensitivity and GOOD JUDGMENT!)

31 Proactively manage change Guard against internal "preference" changes Develop and implement an early warning system Promptly notify owner's representative of changes / trends Guard against "scope creep by design review

32 Joint Federal Government / Industry Cost Predictability Taskforce recommends: Engage qualified professionals to prepare estimates Use appropriate economic models in the estimating process Ensure that the project approval process recognizes cost predictability issues Include scope revision mechanisms in the project approval process and recognize the degree of accuracy of the estimate being used

33 Developed by the LEAN Construction Institute Based on the Toyota Production System Goal is to eliminate waste from the construction process AND meet the client s needs

34 Milestone, phase, two week look aheads and detailed daily plans will be developed Will be used to execute each project and to keep stakeholders informed LEAN techniques (pull planning) will be utilized to optimize the construction sequence

35 Quickly gaining traction At the intersection of BIM and LEAN Construction Planning Major contributor to improving efficiency and productivity

36 Building Information Modelling (BIM) Revit, Bentley, Navisworks Integrated Analysis Tools Energy Models Wind and airflow Daylight and artificial lighting Lifecycle Data Management Tools Asset Management Systems (MMS) Recapitalization, maintenance management, risk management

37 Tools have improved significantly The ability to fully leverage these tools remains a complicated process that requires significant coordination Requires a complete framework people, processes, structure tools

38 Reduction in inter-disciplinary and field interferences Minimize rework Increased productivity Fewer RFI s Fewer change orders Shortened time to occupancy

39 The 4 th D is the integration of schedule into the BIM models Steps include: Establish Work Breakdown and Flow Establish Installation Sequence Reorganize the 3D models Refine the schedule Link 3D objects and activities Refine the 4D model REMEMBER THAT IT S JUST A TOOL, and that human intervention (tactile knowledge) is required

40 LCDM is a process to facilitate the seamless migration of digital information from the design stage through to the operations stage The manual migration process between phases is costly and prone to errors It can be stale dated before it s entered

41 Plan Early in the project Define a common data architecture (corporate data architecture) for life cycle define value added information based on business and technology value Electronic integration of performance/installation information Electronic integration of catalogue information Provide Seamless integration of projects and O/M information Have a standard information management system throughout the company

42 Can rearrange industry structures Will create value Will render certain jobs obsolete Will shift profit pools Will render certain business obsolete

43 Moore s law computing power will double every 18 months

44 The Internet of Things a space within the existing infrastructure in which intelligent devices and objects are linked to each other At present 10 BILLION things are connected. This is less than 1% of the 1.5 TRILLION things in the wold What will this mean for performance based and evidence based design?

45 The Second Machine Age Exponential increase in computing power The digitization of everything Recombinant innovation SaaS (Software as a Service) Mobility Big Data The Cloud

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48 EA (Engineered Architecture) is a revolutionary, disruptive technology for creating superior quality buildings vastly more efficiently. EA will transform the global building industry by dramatically and fundamentally changing the ways in which buildings are designed, fabricated, constructed and utilized, while saving trillions of dollars."

49 Google technology could halve construction costs Google s secret development unit has developed a technology that could earn the company $120 billion a year, and, Is Google planning a BIM-busting app for construction?

50 The platform includes planning tools of expert architects and engineers and advance analytics and simulation tools. Genie standardizes and automates the design and construction processes with unlimited design options, enabling an architect to preserve the building's uniqueness in the urban environment.

51 Today we build individual buildings as though Mother Nature built each one from scratch, rather from seeds. Flux asks: What if we were to build buildings from seeds? Seeds that took on different forms and characteristics depending upon where they were planted? The thinking goes, if we designed this way, we could leverage data and design and build buildings by the thousands in the time it currently takes to design one.

52 Be aware and anticipate the future Be strategic in your thinking Have the ability to discern what is truly important and the energy to fight through next new thing fatigue Collaborate and constantly test new ideas Develop critical-thinking skills Be lifelong learners Be agile

53 Leveraging these technologies and processes requires a new way of working a new way of thinking it s not an extension of what we do today The time to start thinking about it is NOW The amount of up front planning that is required to make this successful cannot be understated

54 ...If you work hard enough and assert yourself, and use your mind and imagination, you can shape the world to your desires. (151) Malcolm Gladwell, Outliers: The Story of Success