Introduction to CII Practices

Special Presentation to
American Council for Construction Education
Jacksonville, Florida
20Feb09
Manuel A. Garcia, P.E.
Associate Director
Construction Industry Institute

1
1/3/14

Session Objectives
CII & ACCE
Review
CII Practice/ Best Practice Concept
CII Best Practices, including
Benefits
Key Elements
Supporting Resources

Professional Development Committee

Tamlin Antoine, NASA

Dr. William W. Badger, Arizona State
James P. Chiarello, Pathfinder
Robert Hayhurst, Occidental Petroleum
Dorothy Hellberg, Emerson Process
Lamonte John, US GSA
Christopher Maxson, CCC Group
Patty Nemeth, Fluor
Henri Ohayon, Bechtel

Michael R. Peters, Black & Veatch

Catherine Polito, UT Austin
Dr. Paul E. Resta, UT Austin
Jane Todd, Ontario Power
Dianne Underwood, ConocoPhillips

Timothy B. Martin, ConocoPhillipsCo chair

Dr. P. Karen Vacca, Washington
Division of URS- Co chair

Manuel A. Garcia, CII

What is CII?

A consortium

of leading owners, contractors &

suppliers, and academia working to improve the

constructed project and the capital investment process.

A research

unit of the Cockrell School of Engineering

at The University of Texas at Austin

Construction Industry Institute- Owner

Abbott
The AES Corporation
Air Products and Chemicals
Alcoa
Ameren Corporation
Amgen Inc.
American Transmission Co.
Anheuser-Busch- Inbev
Aramco Services Company
Archer Daniels Midland Co.
BP America, Inc.
Bristol-Myers Squibb Co.
Cargill, Inc.
Chevron
CITGO Petroleum Corp.
Codelco-Chile
ConocoPhillips
DFW International Airport
The Dow Chemical Co.
DuPont

Members

Eastman Chemical Co.

Eli Lilly and Company
ExxonMobil Corporation
General Motors Corp.
GlaxoSmithKline
Hovensa L.L.C.
Intel Corporation
International Paper
Kaiser Permanente
Marathon Oil Corporation
NASA
NAVFAC
NOVA Chemicals Corp.
Occidental Petroleum Corp.
Ontario Power Generation
Petrobras
Praxair, Inc.
The Procter & Gamble Co.
Progress Energy, Inc.
Rohm and Haas Company

Sasol Technology
Shell Oil Company
Smithsonian Institution
Solutia Inc.
Southern Company
Sunoco, Inc.
Tennessee Valley Authority
Tyson Foods, Inc.
U.S. Architect of the Capitol
U.S. Army Corps of Engineers
U.S. Dept. of Commerce/
NIST/BFRL
U.S. Dept. of Energy
U.S. Dept. of Health & Human
Services
U.S. Dept. of State
U.S. General Services
Administration
U.S. Steel
Vale

Construction Industry Institute- Contractor

Adolfson & Peterson
Construction
Aker Solutions
Alstom Power Inc.
AMEC, Inc.
Atkins Faithful & Gould
Autodesk, Inc.
AZCO INC.
Baker Concrete Construction
Barton Malow Company
Bateman Engineering N.V.
Bechtel Group, Inc.
BIS Frucon Industrial Svcs.
Black & Veatch
Bowen Engineering Corp.
Burns & McDonnell
CB&I
CCC Group, Inc.
CDI Engineering Solutions
CH2M HILL
CSA Group

Day & Zimmermann

dck Worldwide LLC
Dresser-Rand Company
Emerson Process Mgt.
Entech Solar, Inc.
Fluor Corporation
Foster Wheeler USA Corp.
Grinaker-LTA/E+PC
Gross Mechanical
Contractors
GS Engineering &
Construction
Hargrove and Associates, Inc.
Hill International, Inc.
Hilti Corporation
Jacobs
JMJ Associates Inc.
KBR
Kiewit Power Construction
Lauren Eng. & Constructors

Members
M. A. Mortenson Company
McDermott International, Inc.
Mustang
Oracle USA, Inc.
Parsons
Pathfinder LLC
Pegasus Global Holdings
R. J. Mycka, Inc.
S&B Engineers and
Constructors, Ltd.
The Shaw Group Inc.
Siemens Energy, Inc.
SNC-Lavalin Inc.
Technip
URS Corporation
Victaulic Company
Walbridge
The Weitz Company, Inc.
WorleyParsons
Zachry
Zurich

Universities involved in CII Research 1983-2008

University of Alabama
Arizona State University
Auburn University

University of New Mexico

Bucknell University
Carnegie Mellon University

Oklahoma State University

University of Cincinnati
Clemson University
University of Colorado-Boulder
Colorado State University
Columbia University
University of California-Berkeley

North Carolina State University

North Dakota State University
Oregon State University
The Pennsylvania State University
University of Pittsburgh
Purdue University
Polytechnic University
San Diego State University

East Carolina University

University of Florida

San Jose State University

Georgia Institute of Technology

University of Houston
University of Illinois

State University of New York-Albany

Iowa State University

University of Kansas

Texas A&M University

University of Kentucky
Lehigh University

University of Washington

Stanford University
Vanderbilt University
Virginia Polytechnic Institute and State University

The University of Texas at Austin

University of Maryland

University of Waterloo

University of Michigan
Mississippi State University

University of Wisconsin-Madison
Worcester Polytechnic Institute

CII Mission
Enhance business effectiveness and
sustainability of the capital facility life cycle

CII History
Established as a recommendation from The Business Roundtable
CICE Project to address:
construction research
fragmentation of the industry

Founded in 1983 by 28 companies;

Now 116 members
First to bring research to the engineeringconstruction world
First industry-government-academic research
collaboration for the constructed project

The Owners experience

10

Cost Growth (Owner)

25%

Cost Growth

Better

20%
15%
10%
5%
15.40%

0%
-5%
-10%

1
2
3
Minimal
Implementation

10

11
12
Robust
Implementation

CII Best Practice Usage

(Best Practice Index)

Note: Average Budget 44 Million, submitted after 2002 (n=127)

13

14

15

Schedule Growth (Owner)

60%

Schedule Growth

Better

50%
40%
30%
20%

28.8%

10%
0%

1Minimal
2
3
Implementation

10Robust
11
12
Implementation

13

CII Best Practice Usage

(Best Practice Index)

Note: Average Planned Duration 131 weeks, submitted after 2002 (n=155)

14

15

The Contractors experience

13

Value of CII Best Practices

(CII Contractors)
120%

Budget Factor

Better

110%
100%
18.9%

90%
80%
70%
60%
1 Minimal
2 3

Implementation

10 Robust
11 12 13 14 15 16
Implementation

CII Best Practice Usage

(Best Practice Index)

14

Note: Average Budget =58 Million, submitted after 2002 (n=81)

Value of CII Best Practices

(CII Contractors)

Schedule Factor

Better

110%

105%

100%

5.6%

95%

90%
1 Minimal
2 3

Implementation

10 Robust
11 12 13 14 15 16
Implementation

CII Best Practice Usage

(Best Practice Index)

15

Note: Average Planned Duration=109 weeks, submitted after 2002 (n=81)

CII Database

International
312
(19%)

Contractors

Domestic

719
(44%)

1,334
(81%)

1,646 projects

Worth > $76 Billion

Large & Small Projects Combined

Owners

927
(56%)

The Construction Industry Today

5% of U. S. GDP
11.7 million workers- 8% of nations workforce
Affects nearly every aspect of U. S. economy
Vital engine for economic growth

Industry Trends

Workforce & Human Capability

Project Delivery
Corporate Strategy
Technology & Innovation
Markets & Demand Drivers
Social & Political Influences

What Business Environment Changes Impact Our Workforce?

CII 2007 Survey Results

Other
12%
Staff Demographics
8%

Skill Shortage
41%

Changing Processes
5%

Hiring Needs
13%
Business Growth 21%

Organizations Struggle to Prepare Workforces to

Meet Growth Demands

2008
2007
94%
2006
64%

86%
Not Adequately
Prepared

Not Adequately
Prepared

Not Adequately
Prepared
Source: Softscape Results from past three State of the Global Talent Nation surveys of HR
professionals

CII Research Topic Completions

12

140

120

10

100
8

6 More Topics
Completing In 2008

80

27 New Topics
In Last 5 Years

60

4
40

20

20
06

20
05

20
04

20
03

20
02

20
01

20
00

19
99

19
98

19
97

19
96

19
95

19
94

19
93

19
92

19
91

19
90

19
89

0
19
88

YE
AR

Benefits of CII in ACCE Curriculum

Students grounded on proven construction
management methods.
Graduates ready for next learning phase
CII research findings relevant to all industry
sectors, owners, contractors
Will give students exposure to wide range of
construction projects

ACCE Institutions Collaborating With The CII

Professional Development Committee

Arizona State University

Auburn University
East Carolina University
Georgia Institute of Technology
Georgia Southern University
Mesa State College
North Carolina A & T State University
Purdue University
San Diego State University
Southern Illinois University
Texas A&M University
The University of Texas at Austin
University of Florida
University of Washington
Virginia Polytechnic Institute and State University
Washington State University

ACCE Institutions- CII Issued Pubs in 2007

Arizona State University

Clemson University
Colorado State University
Florida International University
Georgia Institute of Technology
Michigan State University
North Dakota State University
Northern Kentucky University
Oregon State University
Penn State University
Purdue University

San Diego State University

Southern Polytechnic State
Stanford University
Texas A&M University
University of California-Berkeley
University of Cincinnati
University of Southern Mississippi
University of Washington
University of Wisconsin
Virginia Polytechnic Institute
Wentworth Institute of Technology

The Next 25 Years

Transformation to a truly global economy

Explosion in technology
Distance no longer a constraint
Communication is instantaneous
Resources traded on a global scale
Visual communications overcome language
barriers
Complexities continue to grow

Will Our Students Be Ready?

CII Practices Courses

Northern Virginia
Virginia Tech
UNC-Charlotte
UT-Austin
Auburn

26

North Carolina A&T

Georgia Tech

2008 Modules
Module 1: Safety
Module 2: Constructability
Module 3: Materials Management
Module 4: Scope Control & Change Management
Module 5: Front-End Planning & PDRI
Module 6: Project Health Assessment
Module 7: Benchmarking and Metrics, Assessment Practices

27

New CII Recognition of Academic Partners

CII Distinguished Professor Award

Recognizes faculty at graduate/undergraduate programs

incorporating CII published research findings in courses
they teach.

CII Curriculum Partner Award

Recognizes graduate/undergraduate programs that

incorporate published CII research findings in their
curricula.

Want to get involved?

Contact me with your dream CII course
CII will review your plan
Facilitate material as appropriate
Your peers are doing it!

Session Objectives
CII & ACCE
Review
CII Practice/ Best Practice Concept
CII Best Practices, including
Benefits
Key Elements
Supporting Resources

CII Practices (CII Best Practice Candidates)

2003
2002
2003

2003

Project Planning Phase

Attract and Maintain Skilled Workers
Automated Identification
Effective Use of Global Engineering
Workforce
Environmental Remediation Management
Equitable Risk Allocation
2007
International Project Risk Assessment
Leader Selection
Modularization/Preassembly
Organizational Work Structure
Project Delivery and Contract Strategies
Project Security
Project Teams
Technology Implementation
Value Management
Work Process Simulation

New or
updated!

Design/ Construction/ Startup Phases

Craft Productivity Practices
2008
Design for Maintainability
Design for Safety
Engineering Productivity Measurement
Piping Design
Project Life
Cost & Schedule Control
2007
Employee Incentives
Fully Integrated and Automated Project
Processes (FIAPP)
Management of Education & Training
Managing Workers Compensation
2006
Project Health Assessment
Small Projects Execution

2006

CII Best Practices

Project Planning Phase
Alignment 2005
Partnering
2009
Pre-Project Planning
Team Building
Design Phase
Constructability
2006
Materials Management

Updated!

Construction/Startup Phase
Planning for Startup
Zero Accidents Techniques
2006
Project Life Cycle
Benchmarking & Metrics
2004
Change Management
Disputes Prevention
Implementation of CII Research 2007
Lessons Learned
2007
Quality Management 2005

Where do CII Practices & Best Practices fit in

the project cycle?

Engineering
Conceptual &
Pre Proj. Planning

Basic

Detail

Procurement
Construction
Startup &
Commissioning

Operations

Everywhere!

Opportunity for Influence

Conceptual
Analysis
and R&D

Rapidly Decreasing
Influence

Influence

Low
Influence

Commitment$$

Scope
Definition

Pre-Project
Planning

Basic
Project
Production Construction Engineering
Data and Authorization Engineering
Complete
Scoping
and
Procurement

Project Life Cycle

Project Expenditures

Level of Influence

Major
Influence

Turnover
and
Start-up

 Questions?

CII Best Practices

Project Planning Phase
Partnering
Alignment of Project
Objectives
Pre-Project Planning
Disputes Resolution
Team Building
Design Phase
Change Management &
Scope Control
Constructability
Materials Management

Construction/Startup Phase
Planning for Start-Up
Zero Accidents Techniques
Project Life Cycle
Benchmarking
Implementation of CII Research
Lessons Learned
Quality Management

Partnering
Project specific partnering
Project objectives focused; short term.
Strategic alliances
Enterprise objectives focused; long term
Optimum Application

37

Partnering Strategy
For
ABC Partners

Partnering
Partnering ToolKit, IR 102-2
Proactive management process
Integrates & optimizes value-added
services of each party to best achieve
business objectives of all parties within
the relationship.
Promotes use of common values and
honorable business practices.

38

Benefits of Partnering
Efficiency improvements from
working together.
Reduced costs for all from effective
resource utilization.
Increased opportunity for
innovation.
Promotes continuous improvement.
Improved profits (value) for all
parties.
Attitude change from adversarial to
cooperative, from self-centered to
team-focused, from win/lose to win/
win.
39

Benchmarking Partnering
vs. Traditional Construction

Result Area
Results

Category

40

Cost

Total Project Cost (TPC)

Construction Administration
Marketing
Engineering
Value Engineering
Claims (% of TPC)
Profitability

10% reduction
24% reduction
50% reduction
$10 per hour reduction
337% increase
87% reduction
25% increase

Schedule

Overall Project
Schedule Changes
Schedule Compliance

20% reduction
48% reduction
Increased from 85% to 100%

Safety

Hours without lost time accidents

Lost work days
Number of doctor cases
Safety rating

3 million vs.
48,000 industry standard
4 vs. 6.8 industry standard
74% reduction
5% of national average

Quality

Rework
Change orders
Direct work rate

50% reduction
80% reduction
42% increase

Claims

Number of claims
Projects with claims

83% reduction
68% reduction

Other

Job satisfaction

30% improvement

The Partnering Process

Phase 1
Owners
Internal
Alignment
Identify
Business
Drivers
Evaluate
Partnering
Prepare
and Align
41

Phase 2
Partner
Selection

Select
Optimum
Partner

Phase 3

Phase 4

Partnering
Relationship
Alignment
Align
Objectives
Develop
Measures
Develop
Reward
System

Project
Alignment

Phase 5
Work
Process
Alignment

Develop
Win / Win
Objectives

Establish
Intraproject
Goals

Reward
Accomplish ment of
Objectives

Establish
Processes
to Support
Measures

CII Implementation Resources

42

Education Modules

EM102-21

Continuing Education

Pending Interest

Online Education

CT16-CT19

Registered Education
Providers

YES

Community of Practice

YES

Alignment
Projects participants working in
harmony to develop and meet a
uniformly defined and understood set
of project objectives.

Initial Application

43

Alignment
Alignment During Pre-Project
Planning, IR113-3.

Project Objective Setting, RS12-1,

Second Edition

44

Benefits of Alignment

Ensures that participants are working toward a

common goal.

45

Alignment Index vs. Performance Analysis

(from recent Research Team 213 data)
Alignment Index Score*
Performance
Cost

Less than Median

Greater than Median

3.3% over budget

6.5% below budget

(N=30)
Schedule

24.5% behind
schedule
(N=33)

Change orders

8.2% of budget
(N=26)

Med. = 7.81
*Alignment During Pre Project Planning
46

(N=34)
8.4% behind
schedule
(N=35)
7.6% of budget
(N=27)

Elements of Alignment

Top-to-Bottom Alignment
Executive
Business
Project

Business Planning
Pre-Project Planning
Project Execution

Functional

Facility Operation

Project Life Cycle Alignment

Cross-Organizational Alignment

47

Alignment During Pre Project Planning

48

Alignment of Project Objectives

Objective Setting Phases

49

Agreement Matrix

CII Implementation Resources

50

Education Modules

EM113-21

Continuing Education

Course I

Online Education

CT02

Registered Education
Providers

YES

Community of Practice

Pending Interest

Definition of Pre-Project Planning

Pre-project planning is also known as:
Front end loading
Conceptual planning
Front end planning Programming/schematic design
Feasibility analysis Early project planning

Initial Application

51

Pre-Project Planning
Pre-Project Planning Handbook, SP39-2.
Defines functions involved in pre-project
planning.
Provides outline to develop specific steps
and tools for the pre-project planning of
capital projects.

52

Pre-Project Planning Process

Analyze
Project Risks
Document
Project Scope
and Design

Analyze
Technology
Evaluate
Site(s)

Select
Team

Prepare
Pre-Project
Planning Plan

53

Compile Project
Definition
Package

Evaluate
Alternatives

Team
Organize for
Pre-Project
Planning

Establish
Project Control
Guidelines

Prepare
Conceptual
Scopes and
Estimates

Draft
Charter

Validated
Project
Concept

Define Project
Execution
Approach

Formulated
Idea

Select
Project
Alternative(s)

Selected
Alternatives

Develop A
Project
Definition
Package

Make
Decision
Authorization
Package
Project
Definition
Package

Decide
Whether to
Proceed with
Project

Decision

Front End Planning

Front-End Planning Process,
IR213-3
HTML product only available by download
Latest tools in sequence
Prompts timely use of tools
Includes electronic files of templates,
checklists, and other tools

54

Front End Planning

Front-End Planning Process,
IR213-2
HTML product; download only
Latest tools in sequence
Prompts timely use of tools
Files of templates, checklists, other tools
Includes:
IR113-2, Project Definition Rating Index (PDRI) Industrial
Projects
IR155-2, PDRI Buildings Projects
IR113-3, Alignment During Pre-Project Planning)
RS213-1 Front End Planning: Break the Rules, Pay the Price
55

Front End Planning Process

Feasibility

Concept

Detailed
Scope

Initiate Phase

Initiate Phase

Initiate Phase

Generate Options

Analyze Alternatives

Preliminary Design/
Eng.

Filter Options

Conceptual Scope
and Estimates

Preliminary Des./Eng.
Reviews

PDRI 1

Evaluate and Select

Best Alternatives

PDRI 2i

Feasibility Report

Concept Phase
Report
PDRI 2

Finalize Scope
Definition
Cost & Schedule
Control Estimates
PDRI 3

Incorporates
PDRI checkpoints
with
target scores
56

Project Definition
Package

Design and
Construction

Recognizes
role of
design in
support of
the process

Planning Tools
PDRI: Project Definition Rating Index,
Industrial Projects, Third Edition, IR113-2
Comprehensive checklist with 70 scope
definition elements.
Identifies level of scope definition, areas for
improvement on industrial projects.

Min score 70
Min recommended score 200
Max score 1000

57

58

Planning Tools
PDRI, Project Definition Rating Index
for Building Projects, Third Edition,
IR155-2.
Comprehensive checklist with 64
scope definition elements.
Identifies level of scope definition,
areas for improvement on building
projects.
Min score 71
Min recommended score 200
Max score 1000

59

IR 113-2 PDRI- Industrial

SECTION I
A. Manufacturing Objectives Criteria
B. Business Objectives
C. Basic Data Research & Development
D. Project Scope
E. Value Engineering
SECTION II
F. Site Information
G. Process/ Mechanical
H. Equipment Scope
I. Civil, Structural & Architectural
J. Infrastructure
K. Instrument & Electrical
SECTION III
L. Procurement Strategy
M. Deliverables
N. Project Control
P. Project Execution Plan

60

IR 155-2 PDRI- Buildings

SECTION I
A. Business Strategy
B. Owner Philosophies
C. Project Requirements

SECTION II
D. Site Information
E. Building Programming
F. Building/Project Design Parameters
G. Equipment

SECTION III
H. Procurement Strategy
J. Deliverables
K. Project Control
L. Project Execution Plan

Recent CII Pre-Project Planning Benefit Data

from Research Team 213
Sample of 609 projects, $37 billion
Results of good front end planning:
Cost: 10 percent less
Schedule: 7 percent shorter delivery
Changes: 5 percent fewer

61

Figure 1-1 Owner Benefit of Practice Use

62

62

Figure 1-2 Contractor Benefit of Practice Use

63

CII Implementation Resources

64

Education Modules

EM39-21

Continuing Education

Course I

Online Education

CT09-CT13

Registered Education
Providers

YES

Community of Practice

Pending Interest

Disputes Prevention & Resolution

1. Use of Disputes Review Board
2. Process for addressing disputes in early
stages to avoid litigation.
Initial Application

65

Disputes Prevention & Resolution

Disputes Potential Index, SP23-3
Predicts potential for construction project
contract disputes and claims. Based on
correlation between certain project factors
and occurrence of disputes: Disputes
Potential Index (DPI).
DPI tool produces overall score predicting
likelihood of disputes on a given project.
DPI tool assesses eight areas associated
with disputes.

66

Disputes Prevention & Resolution

Prevention and Resolution of
Disputes Using Disputes
Review Boards, IR23-2.
Describes the use of
Disputes Review Boards.

67

Benefits of Disputes Prevention

& Resolution
Eliminates adversarial positions.
Promotes trust between participants.
Helps eliminate disputes.
Resolves disputes on the project.
Enhances the progress of the work.
May result in repeat business.
68

Dispute
Resolution
Process

Contractor objects to
any decision, action, or
order of owner.

OR

Owner considers
objection and gives
decision.

Either owner or
contractor may give
written notice and
submit any
disagreement, claim, or
controversy to board.

Accept decision

Matter
resolved

Decision is final unless

either party submits
dispute to board.

Accept decision

Matter
resolved

Decision is submitted
to board and hearing is
scheduled.

Hearings are held.

Board makes written
recommendation to parties.

Accept recommendation

Matter
resolved

Parties receive board

recommendation and
respond in writing.

Reject recommendation
Parties resort to other
methods of settlement.

69

Appeal recommendation

CII Implementation Resources

70

Education Modules

Pending Interest

Continuing Education

Pending Interest

Online Education

Future

Registered Education
Providers

YES

Community of Practice

Pending Interest

Team Building
Project-focused process with team:
Shared goals & interdependence,
Trust, commitment, accountability,
Collaborative problem-solving skills.
Initial Application

71

Team Building
Communications Project Assessment
Tool (Compass), Users GuideIR105-2

Team Building: Improving Project

Performance RS37-1

Building the Project Team

Participant Handbook EM37-21A

72

Benefits of Team Building :

Reducing adversarial relationships, developing
trust and team spirit.
Improving cooperation, cohesiveness, and
problem-solving skills.
Providing alignment of goals and expectations.
Identifying problems early.
Shortening schedule.
Lowering cost.
Improving safety record.
Reducing and managing changes.
73

Figure 1-1 Owner Benefit of Practice Use

74
74

Figure 1-2 Contractor Benefit of Practice Use

75

Elements of Team Building:

Culture

- Leadership
- Communication
- Trust and Honesty

Execution
Processes

- Stakeholders
- PPP Process
- Reward and Recog.

Information

- Priority between
cost, schedule, and
features

Tools

- Team Meetings
- Teamwork and Team
Building
- Planning Tools
76

B
a
r
r
i
e
r
s

Alignment

CII Implementation Resources

77

Education Modules

EM37-21

Continuing Education

Course I

Online Education

Planned

Registered Education
Providers

YES

Community of Practice

Pending Interest

 Questions?

CII Best Practices

Project Planning Phase
Partnering
Alignment of Project
Objectives
Pre-Project Planning
Disputes Resolution
Team Building
Design Phase
Change Management &
Scope Control
Constructability
Materials Management

Construction/Startup Phase
Planning for Start-Up
Zero Accidents Techniques
Project Life Cycle
Benchmarking
Implementation of CII Research
Lessons Learned
Quality Management

Definition of Change Management

The process of incorporating a balanced
culture of recognizing, planning &
evaluating project changes

Initial Application

80

Change Management
Project Change Management, SP43-1
Provides
1. Comprehensive view of
agreements & changes.
2. Recommends practices for
effective change management.
3. Prototype change management
system.

81

Benefits of Change Management

Increases project safety.
Reduces cost and schedule.
Improves job quality.
Enhances team inter-phase relationships.
Enables anticipation of project changes and
effective corrective actions.
Provides data for planning future projects.
Minimizes the number of changes in future
projects.
82

Figure 1-1 Owner Benefit of Practice Use

83

83

Figure 1-2 Contractor Benefit of Practice Use

84

The Change Management Process:

Promote a
Balanced
Change
Culture
Encourage
beneficial
change
Discourage
detrimental
change

85

Recognize
Change

Evaluate
Change

Implement
Change

Education

Elective

Authorization

Communication

Required

Documentation

Documentation

Decide quickly

Tracking

Trending

Continuously
Improve
Share lessons
learned
Be prepared to
improve

CII Implementation Resources

86

Education Modules

EM113-21

Continuing Education

Course I

Online Education

CT08

Registered Education
Providers

YES

Community of Practice

Pending Interest

Definition of Constructability
The optimum use of construction
knowledge and experience in planning,
design, procurement, and field
operations in order to achieve project
objectives
Initial Application

87

Constructability
Constructability Implementation Guide,
2nd Edition, SP34-1.
Details milestones required to
implement constructability.
Includes case studies on four realworld projects.

88

Benefits of Constructability
Avg. 4.3% reduction in project costs.
Avg. 7.5% reduction in project schedule.
Potential to improve:

89

Security, safety, & environmental impact.

Project quality.
Operability, functionality, and reliability.
Project team relationships.
Rework and rescheduling on the project.

Figure 1-1 Owner Benefit of Practice Use

90

Figure 1-2 Contractor Benefit of Practice Use

91

The Constructability Process:

92

CII Implementation Resources

93

Education Modules

EM-11

Continuing Education

Course I

Online Education

CT03-CT06

Registered Education
Providers

YES

Community of Practice

Pending Interest

Definition of Materials Management

Integrated process for planning & controlling
all necessary efforts to
Specify
Procure
Deliver materials & equipment to the job
site.
Initial Application

94

Materials Management
Procurement and Materials Management: A
Guide to Effective Project Execution, IR7-3.
Guides modern materials management.
Discusses all aspects of the materials
management process.
Glossary of over 300 terms & post-project
evaluation questionnaire.

New research under way- new

publications due in 2009!

95

Benefits of Materials Management

Average % Improvement
Reduced bulk supplies
Improved supplier performance
Cash flow savings
Reduced site storage and handling
Improved craft labor productivity
Improved project schedule
Reduced management personnel
Reduced risk

96

40
24
23
21
16
16
15
5

Figure 1-1 Owner Benefit of Practice Use

97

Figure 1-2 Contractor Benefit of Practice Use

98

CII Implementation Resources

Education Modules

EM7-21

Continuing Education

Course II

Online Education

99

Future Course

Registered Education
Providers

YES

Community of Practice

Pending Interest

CII Best Practices

Project Planning Phase
Partnering
Alignment of Project
Objectives
Pre-Project Planning
Disputes Resolution
Team Building
Design Phase
Change Management &
Scope Control
Constructability
Materials Management

Construction/Startup Phase
Planning for Start-Up
Zero Accidents Techniques
Project Life Cycle
Benchmarking
Implementation of CII Research
Lessons Learned
Quality Management

Planning for Startup

Planning for the transitional phase between plant
construction completion & commercial operations,
including:
Systems turnover.
Check-out of systems.
Commissioning of systems.
Introduction of feedstocks.
Performance testing.

Initial Application
101

Planning for Startup

Planning for Startup, IR121-2.
Contains Toolkit with 26 tools to
help plan successful startup.
Details 45 activities that should be
noted as part of planning for
startup over eight typical phases
of a project.
Includes Startup Planning Model.

102

Benefits of Planning for Startup

Provides common objectives & plan for:

System turnover, checkout, commissioning & filling.

Performance testing.
Business unit & plant operations.
Owner project management.

Involves key front-end stakeholders before design is fixed.

Project Management, Engineering, Construction
Plus Startup Manager, Plant Operations & Maintenance.

Increased focus on:

Cost elements of startup.
Estimate accuracy.
Meeting commercial operations date.

Timely & thorough identification of problems & issues during

planning phasebefore startup activities.
103

Figure 1-1 Owner Benefit of Practice Use

104

Figure 1-2 Contractor Benefit of Practice Use

105

SuPERTOOL 1-A-2

106

SuPERTOOL 1-A-2
Thorough Planning

100
90
80
70

SuPER
Score

60

WORK
IN THIS
ZONE

50

AVOID
THIS
ZONE

40
30
20
10
No Planning

0
Definition,
Concept &
Feasibility

Front-End
Engineering

Detailed
Design

Construction

Project Phases
107

Checkout,
Commissioning
& Initial
Operations

CII Implementation Resources

108

Education Modules

EM121-21

Continuing Education

Course I

Online Education

CT13-CT14

Registered Education
Providers

YES

Community of Practice

Pending Interest

Definition of Zero Accident Techniques

Techniques that promote a culture that
believes that
all accidents are preventable
establishes zero accidents as the
only acceptable goal.
Initial Application

109

Zero Accidents Techniques

EM-160 Making Zero Accidents
A Reality

RS160a-1 Making Zero Accidents

A Reality: Focus on Shutdowns,
Turnarounds, and Outages

SP32-2 Zero Injury Economics

RS32-1 Zero Injury Techniques

RS216-1 Targeted Safety

Programs

RS13-1 Managing Subcontractor

Safety

RS190-1 The Owners Role in

Construction Safety
RS160-1 Safety Plus: Making
Zero Accidents A Reality

110

Video DVD-1 One Too Many

Figure 1-1 Owner Benefit of Practice Use

111

Figure 1-2 Contractor Benefit of Practice Use

112

TRIR (1989-2007)
16.00

Total Recordable Incidence Rate

14.30

14.20

14.00

Industry*

13.00 13.10

CII

12.20

12.00

11.80
10.60

10.00
8.00

9.90
9.50 8.80

7.19

8.60 8.30

7.90

6.12

6.00

5.32

7.10 6.80
6.40 6.30

5.90

4.31

4.00

3.44 3.00

2.66 2.30

2.00

1.60 1.59 1.67

1.03 1.02

1.23 1.16 0.88

0.72 0.58 0.68

0.00
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
325

413

477

497

527

613

644

770

518

765

995

936 1,117 1,073 1,129 1,195 1,333 1,297 1,766

Year and Work Hours (MM)

*OSHA Construction Division, NAICS 236-238, SIC 15-17

113

Reflects OSHA Reporting Change

DART (1989-2007)
8.00
7.00

6.80

Industry*
CII

6.79

DART (LWCIR) Incidence Rate

6.10
5.80

6.00

5.50

5.50

4.90

5.00

4.50

4.00

4.40 4.00 4.20 4.104.00

3.80 3.60

3.40

3.40

3.20

3.00
2.00

1.90

1.55

1.45 1.14

0.81

0.63

1.00

0.55 0.45 0.31 0.41

0.27 0.26 0.23

0.46 0.36
0.33 0.25

0.21 0.23

0.00
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
325

413

477

497

527

613

644

888

591

763 1,122 936 1,117 1,073 1,129 1,301 1,419 1,100 1,724

Year and Work Hours (MM)

*OSHA Construction Division, NAICS 236-238, SIC 15-17

114

Reflects OSHA Reporting Change

Elements of Zero Accident Techniques

Techniques address:

115

Owners influence

Role of safety professionals

Management actions

Award program effectiveness

Design considerations

Safety meetings

Written programs

Inspections and audits

Training

Other related issues

CII Implementation Resources

116

Education Modules

EM160-21

Continuing Education

Course II

Online Education

CT07

Registered Education
Providers

YES

Community of Practice

YES

Web Seminars

WS11-01 & 02

 Questions?

CII Best Practices

Project Planning Phase
Partnering
Alignment of Project
Objectives
Pre-Project Planning
Disputes Resolution
Team Building
Design Phase
Change Management &
Scope Control
Constructability
Materials Management

Construction/Startup Phase
Planning for Start-Up
Zero Accidents Techniques
Project Life Cycle
Benchmarking
Implementation of CII Research
Lessons Learned
Quality Management

Definition of Benchmarking and Metrics

The systematic process of measuring
performance against recognized leaders to
determine best practices that lead to superior
performance.

Initial Application

119

Benchmarking
Benchmarking Implementation
Toolkit, IR BMM-2
Introduces the CII
Benchmarking & Metrics
Program
What you measure you
improve

120

Benefits of CII Benchmarking and Metrics

Highlights strengths and weakness.
Allows focus on improvement where needed
without wasting scarce resources.
Avoids making mistakes in project
implementation.
Organizational level benchmarking yields positive
bottom line.
Collaboration among competitors/owners/
contractors.
Provides understanding & focus on most effective
practices for greater bottom-line impacts.

The CII Benchmarking Process

Company Leadership

Project Managers

Company Benchmarking
Associate

Decide/Commit to
Benchmark as Basis
for Improvement

CII Staff, Account Managers,

and Committee
Develop/Improve Metrics,
Processes, Policies, and
Procedures

Commit to
Benchmarking and
Improvement

Commit to
Benchmarking
Coordination and
Attend CII Training

Develop Data Collection

& Reporting Tools

Conduct Training and Feedback Sessions

Select Projects for Analysis and Preload/Initiate Project in CII Database
Initiate Questionnaire
During Project
Execution
Review and Act on
Interim CII Online
Recommendations

Validate Questionnaires

Release
Questionnaires to CII

Complete and Submit

Questionnaire at
Project Close-out
Perform Self-Analysis and Develop Improvement Plan

Perform Validation
Checks, Run Analysis,
and Generate Reports
Provide Input to
Research and
Implementation

Owner Performance Improves

Contractor Performance Improves

MetricsPerformance

Change Performance

Large Projects
Practice Use
Alignment

Automation/Integration

Construction Productivity

Cost Performance

Engineering Productivity

Rework Performance

Front

Safety Performance

Partnering

Schedule Performance

During Front End Planning

Benchmarking
Change

& Metrics

Management

Constructability
Dispute

Resolution

End Planning

Planning

for Startup

Project

Delivery & Contract Strategy

Project

Risk Assessment

Quality

Management

Team

Building

Zero Accident
125

Tech

Techniques

MetricsPerformance

Practice Use

Change

Automation/Integration Tech

Construction

Controls

Design

Front End Planning

Organization

Processes

Procurement

Safety, Health & Environment

Start-Up Planning &

Commissioning

Performance

Construction
Cost

Productivity

Performance

Engineering
Safety

Productivity

Performance

Schedule

126

Small Projects

Performance

CII Database
International
312
(19%)

Contractors

Domestic

719
(44%)

1,334
(81%)

127

1,646 projects

Worth > $76 Billion

Large & Small Projects Combined

Owners

927
(56%)

CII Implementation Resources

Benchmarking Metrics Committee
Dr. Stephen Mulva
Associate Director
[email protected]
Dr. Jason Dai
Research Engineer
[email protected]
Hong Zhao
Sytems Analyst
[email protected]

Definition of Implementation of CII Research

Comprehensive and effective use of CII
research findings.

Initial Application

129

Implementation of CII Research

Implementation Model + Knowledge
Structure Guide, IR 166-2

CII Best Practices Guide, 2nd Edition,

IR 166-3

Implementation Planning Model:

Steps to Success, IR246-2

130

IR 166-2
Implementation Model + Knowledge Structure Guide
Provides a Jump Start Kit.

Use CII Implementation Model to drive your

implementation program.

Use the CII Knowledge Structure

to identify CII Best Practices to
adapt within your organization.

131

IR 166-2 The Implementation Model

Celebrate Success
Measure Results
Product Implementation
Products Training
Product Champions/Review Boards
Implementation Plan and Goals
Self Audit
Corporate Implementation Champion
Corporate Commitment

CII Products
132

CII Support

Benefit/Cost Data

IR 166-3
CII Best Practices Guide
All 14 Practices Described.
Assesses Implementation Level
of a Best Practice.
Benefits of Using Each Best
Practice.
List of CII References for Each
Best Practice.

133

Company Procedures

CII Best Practices Guide

CII Best Practice

Incorporated

Project
Procedure
xxx

134

IR246-2
Implementation Planning Model: Steps to Success
Focuses on the development of an
implementation plan.
This research effort builds upon the
Implementation Pyramid in IR166-2.
Primarily focuses on expansion of the
fourth level of the pyramid:
Implementation Plan and Goals.
The Staircase Implementation Model
introduces phased steps to
implementation for successful
implementation.
Recommended by the CII
Implementation Strategy Committee
135

IR246-210 Stages to Success

Needs
Analysis

Management
Buy-in

Education

Empowerment

Champion

Establish Steps
(Chapter 3)

Adapt Matrix
(Chapter 3)

Vision

Support

Roadmap

Diagram Rings:
1 No Implementation
2 Implementation Plan
3 Start Implementation
4 Partial Implementation

Necessity

Communication

5 Near Implementation
6 Full Implementation

Perform Change Audit

(Chapter 5)

Communicate Plan
(Chapter 4)

Perform
Change
Audit

Obtain Buy-In
After Change
Preparation

Meet Change
Preparation
Thresholds

Disseminate
Initial
Communication

4
1

Identify Initial
Success
Opportunity

Implement
Tasks/Plan
(Chapter 4)
136

Develop Plan
(Chapter 4)

25
6

Assign
Initial
Champion

Diagram Rings:
1 No Implementation
2 Implementation Plan
3 Start Implementation
4 Partial Implementation
5 Near Implementation
6 Full Implementation

Perform Step
Evaluations
(Chapter 6)

Benchmark

Benefits of Implementing CII Research

Improves performance in
Safety.
Quality.
Schedule.
Budget/cost.
Other targeted goals.

Improved work processes & enhanced owner/

contractor communications.
Increased operational efficiency & competitive
position.
Enhanced professional development.

137

Owner Performance Improves

138

Contractor Performance Improves

139

CII Implementation Resources

Education Modules

Pending Interest

Continuing Education

Pending Interest

Online Education

Pending Interest

Registered Education
Providers
Community of Practice
140

Yes

ISC, Implementation
Champions Program
& Workshops

Lessons Learned
Knowledge gained from experience,
successful or otherwise, for the purpose
of improving future performance.

Optimum Application

141

Lessons Learned
Implementation of Lessons Learned
Programs Proactive Management
Process, IR230-2
Maturity Model Matrix and SelfAssessment Questionnaire
Jump Start Guide- recommended steps
for program development
Sample Transactional Work Flow
Diagram- roadmap for typical lessons
learned transactions.
Together- framework for integrating
lessons learned program into work
processes.

142

Lessons Learned Program Benefits

Study of over >100 surveys of involving >70 organizations
62% of companies reported somewhat effective Lessons
Learned Programs (LLP)
8% reported very effective
20% neutral
10% not effective
Quantifiable measures:
15% base cost improvements for State Department
Embassy Prototypes due to LLP
Varies safety improvements from 50% to 300%
Key Performance Indicator trends improving due to
enhanced LLP

143

Source: CII Knowledge Management Committee Lessons Learned as CII Best

Practice Validation Study, May 2008.

Maturity Model Matrix

Example: Leadership
Level 1 Limited upper management focus on LL
Program. No stress on program importance.
CHARACTERISTIC

LEADERSHIP

MATURITY LEVELS
LEVEL 1
Upper management
has limited focus on
the use of LL.
Communities of
practice do not stress
the importance of
using LL.

LEVEL 2

LEVEL 3

Upper management
mentions the use of
lessons learned. Some
communities of
practice advocate the
use of LL, but others do
not actively participate.

Upper management
stresses the
importance of LL and
recognizes the need
for a program. Most
communities of
practice advocate
use of LL, but some
do not participate.

LEVEL 4
Upper management
strongly supports,
promotes, and expects
the use of the LLP.
Communities of practice
willingly participate and
advocate the use of LLs
and share management
vision of the program.

Level 4 Upper management strongly supports,

promotes, expects use of the program. Communities of
practice willingly participate and advocate use of
program.
144

Self-Assessment Questionnaire
Example: Lesson Collection
II. LESSON COLLECTION
8. A well-defined work process for submitting or collecting LL exists within
your organization.
a) Strongly Disagree

b) Disagree

c) Agree

d) Strongly Agree

9. The work process for submitting/collecting LL is consistently followed

within your organization.
a) Strongly Disagree

b) Disagree

c) Agree

d) Strongly Agree

10. Your LL submission/collection process is effective.

a) Strongly Disagree

145

b) Disagree

c) Agree

d) Strongly Agree

Jump Start Guide

Step
1

Description
Review and
assess current
status.

Action Items
Use of Maturity Model Matrix and/or SelfAssessment Questionnaire
Assess organization vs. matrix.
Compile results.

Set out
improvement
initiative needed.

Review each matrix category for current level

of maturity.

Senior leadership
involvement.

Prepare results from Steps 1 and 2 in

presentation format.

Determine levels of maturity needed to initiate

an effective LLP.

Review presentation with senior leadership.

Obtain their commitment to proceed in
establishing LLP.

146

Work Flow Diagram

147

CII Implementation Resources

148

Education Modules

Pending Interest

Continuing Education

Pending Interest

Online Education

Pending Interest

Registered Education
Providers

YES

Community of Practice

Topic Driven

Quality Management
All activities conducted to improve
efficiency
contract compliance
cost effectiveness

This Practice Should Always Be In Effect

149

Quality Management
Implementing TQM in Engineering &
Construction, SP31-1
Shows senior management the potential
benefits of TQM implementation.
Assesses current TQM implementation
efforts.
Assists subs/suppliers in own TQM
process.
Addresses success factors:
TQM implementation roadmap
Critical role of management
TQM training
Results of implementing TQM
150

New research under

way- new publications
due in 2009!

Benefits of Quality Management

Increase survivability- increasingly competitive world.
Improve market share and profitability.
Better serve the client needs.
Improve facility quality and safety.
Reduce project duration and costs.
More fully utilize employee talent.
Enhance ability to make informed cost/benefit decisions.

Elements of Quality Management

Total Quality Management (TQM)- process by which
quality management is accomplished.
Requires senior management as the driving force.
Senior management must be convinced of the benefits.
Senior management must personally and persistently
lead the building of quality values into the organizations
operations.
A quality program should follow a recognized quality
methodology and or a recognized international standard.

The Quality Management Process:

CEO

Senior
Mgrs

Middle
Mgrs

Work
Force

Internal
TQM Coord.

Phase I: Exploration & Commitment

Phase II: Planning & Preparation
Phase III: Implementation
Phase IV: Sustaining

External
Consultant

Elements of the Measurement Process Include:

Identification of project variables.
Why and when these variables should be
measured.
Examples of how to measure these variables.
How the results can be utilized in making project
decisions.

CII Implementation Resources

155

Education Modules

Pending Interest

Continuing Education

Pending Interest

Online Education

Pending Interest

Registered Education
Providers

YES

Community of Practice

Pending Interest

CII Best Practices

Project Planning Phase
Partnering
Alignment of Project
Objectives
Pre-Project Planning
Disputes Resolution
Team Building
Design Phase
Change Management &
Scope Control
Constructability
Materials Management

156

Construction/Startup Phase
Planning for Start-Up
Zero Accidents Techniques
Project Life Cycle
Benchmarking
Implementation of CII Research
Lessons Learned
Quality Management

Value of Best Practices

Theoretical Relationship

Performance

0.4
0.3
0.2

Better

0.1
0
-0.1
-0.2

4th Quartile

Low

157

3rd Quartile

2nd Quartile

Practice Use

1st Quartile

High

CII Best Practices In Industry

Washington Group included CII Best Practices as operational
procedural base while restructuring out of bankruptcy into successful
world class operation.
Adopted by St. Louis Council of Construction Consumers as basis of
annual awards.
Cited in May 2003 GAO report to U S Senate verifying UN capital
program budget.
December 2008, CII tapped by President Obamas transition team to
provide multiplier for stimulus investment job growth.

Key CII Education & Participation Resources

The Professional Development Continuum- path for construction
project management professional development & resources aid.
CII Education Modules- recast CII original research into adultlearning courses for instructor-led training.
Online Education courses- based on CII Best Practices, use the
Internet to deliver CII education.
CII Web Seminars- live events delivered on various topics of interest
via the Internet.
Continuing Education Courses- present CII education modules in
an interactive classroom environment at The University of Texas at
Austin.
The CII Executive Leadership Program- partnership between CII
and The University of Texas McCombs School of Business to offer a
world-class leadership program for senior executive candidates.

Session Objectives Check

Reviewed
CII & ACCE
CII Practice/ Best Practice Concept
CII Best Practices, including
Benefits
Key Elements
Supporting Resources

 Questions?

Manuel A. Garcia
Associate Director
Construction Industry Institute
3925 W. Braker Lane (R4500)
Austin, TX 78759-5316
(512) 232 1966
[email protected]

Construction Industry Institute

www.construction-institute.org

Thank you for your attention!